Mumbai: District Consumer Dispute Redressal Forum Penalise Indian Bank To Refund ₹15 Lakh With 9% Interest To Complainant

Mumbai: District Consumer Dispute Redressal Forum Penalise Indian Bank To Refund ₹15 Lakh With 9% Interest To Complainant

The complainant, Subramanian Ramakantan, a Chembur resident, owns Vivitaar Backups. A customer of Indian Bank, he had sought a term loan of Rs15 lakh and a cash credit of Rs15 lakh for business.

Pranali LotlikarUpdated: Thursday, May 02, 2024, 02:26 AM IST
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Mumbai: District Consumer Dispute Redressal Forum Penalise Indian Bank To Refund ₹15 Lakh With 9% Interest To Complainant | Indian Bank

Mumbai: The Suburban Mumbai’s District Consumer Dispute Redressal Forum has penalised Indian Bank for negligence in not updating the address of one of its client’s firms, which caused the latter financial loss to the tune of Rs15 lakh. The forum has asked the bank to pay the entire amount along with 9% interest since 2000. The forum has also asked the bank to pay Rs50,000 toward mental agony and Rs15,000 as litigation charges.

The complainant, Subramanian Ramakantan, a Chembur resident, owns Vivitaar Backups. A customer of Indian Bank, he had sought a term loan of Rs15 lakh and a cash credit of Rs15 lakh for business. The bank had given the loan against the products as well as machinery that he owned. As security, the bank purchased insurance for the firm’s machinery and products against the standard fire and special perils. This policy was active between January 2020 and January 2021.

When the complainant sought the loan, his firm was based in Sanpada. Later, it shifted to Nerul and he informed the bank in a written communication, asking it to update the address details.

In August 2020, a fire broke out in the complainant’s firm and caused a damage of around Rs15 lakh. He informed the police and the bank, which immediately sent a surveyor, who later submitted a report. However, as the bank had not changed the address, the claim was rejected by the insurance firm. Meanwhile, the bank had written to the insurance firm, accepting their mistake of failing to update on the address.

The aggrieved complainant approached the consumer forum, seeking compensation for his loss. The forum had asked the bank to file its reply, but the bank did not respond. The forum took up the matter ex-parte and held the bank responsible for negligent behaviour.

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