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Rediff.com  » Business » Citibank told to pay Rs 50,000 for not providing loan details

Citibank told to pay Rs 50,000 for not providing loan details

September 14, 2006 14:55 IST

A New Delhi consumer court has directed Citibank to pay a compensation of Rs 50,000 to a private company for the bank's failure to provide certain details of the loan disbursed to the latter.

Holding the bank responsible for deficiency in service, the Delhi State Consumer Disputes Redressal Commission has asked it to pay the compensation amount within a month.

The Commission Bench headed by Justice J D Kapoor and Member Rumnitta Mittal, however, allowed the plea of the Citibank that the consumer South-Delhi based M/s M P Bhargava & Co Pvt Ltd cannot be exempted from making the re-payment of loan amount at the agreed rate of interest on the ground of non-removal of discrepancies.

Earlier, a District Consumer Forum, deciding the complaint of the loanee company, had ruled that the bank was not entitled for charging the interest on the loan amount after August 15, 1998, as it failed to provide certain information.

A loan of Rs 12 lakh (Rs 1.2 million) was granted to the company on October 5, 1995 by the bank.

But it found certain irregularities regarding the date of loan and charging of booking fees and name of the loanee upon the receipt of statement for the period ending December 13 that year.

The state commission, partly allowing an appeal of the bank, held, ". . . at the most, the respondent (loanee company) can be awarded compensation for delay in not providing the details. . ."

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