ICICI bank ordered to pay compensation

ICICI bank ordered to pay compensation

Mangalore Today News Network

Mangalore, July 13, 2012: The Dakshina Kannada District Consumer Dispute Redressal Forum has directed ICICI Bank to pay a compensation of Rs. 25,000 to Mr. Ramdas Nayak, professor of pathology at KMC.

Reportedly, Prof. Nayak had closed a loan account at ICICI Bank, but the bank had deducted an excess amount of Rs. 50,000 from his account through electronic clearance system (ECS).

 

The forum passed an order, in which it directed the bank to return the documents to Prof. Nayak, pay back the excess amount it deducted, and pay a compensation of Rs. 25,000 for the inconvenience caused to him. The forum also asked the bank to pay Rs. 2000 as the cost of litigation.

Prof. Nayak had taken a loan of Rs. 7.5 lakh from the ICICI Bank branch on PM Rao Road in 2000 and closed it completely by paying Rs. 2.66 lakh in March 2011. The bank, however, did not return his original documents. Instead, it deducted two installments of Rs. 25,000 each through ECS from his savings bank (SB) account.

The bank excused itself by saying that it had no computerized entry system when Prof. Nayak took the loan in 2000. Since all the records were later entered into computers, Prof. Nayak’s loan was not closed. Stating that the loan was closed in the second week of August and that it would refund the extra deducted amount to Prof. Nayak’s SB account, the bank requested the forum to dismiss the complaint. 

Asha Shetty, president of the forum, refused to accept this excuse and said that the bank stands guilty of unfair trade practice, owing to which it ought to give proper compensation to the complainant. The forum also observed that the bank had deposited only a few original documents and Rs. 47,500 with it. Since the bank has no valid reason not to refund the entire amount of Rs. 50,000, the forum directed the bank to refund the entire excess amount it had deducted.