SBI to pay Rs 1 lakh compensation

Chennai: The state consumer disputes redressal commission, Chennai, has dire­c­t­ed the State Bank of India to pay a compensation of Rs 1 lakh to the proprietor of an export company for failure to rele­a­se a loan sanctioned in 2009.

K. Ramani of Ko­dambakkam had appr­oa­ched SBI, SME City Centre, Egmore, in 2009, for a loan of Rs 24 lakh for purchasing computeris­ed machines for her Chr­is­tie Auto Embr­oid­e­ry, w­h­ich is engaged in em­br­oidery and stitching buttons on export garments.

After initial scrutiny, the bank sanctioned Rs 22.50 lakh as loan. Ho­p­i­ng to get the amount, she deposited all the docume­nts, including the mortgage deed of a property.

When Ramani appro­a­c­hed the AGM of the bank to release the amo­u­nt, the official refused to give a proper reply. She issued notice in December 2009.

In its rep­ly dated Dece­m­ber 9, 20­1­0­, the bank st­a­ted that t­he documents relat­ing to the purchase of mac­hi­nes and employment or­d­e­rs were fabricated and, hence, the am­o­unt was not released.

She contended that due to the bank’s action, the firm had incurred a loss of business worth Rs 1.25 lakh per month. Denying the allegations, the bank stated that the loan amount was not released after verification of the vouchers and prospectus submitted by the petitioner.

The price of the machines was exaggerated and the tailoring institute dealing with manpower was not dealing with embroidery works.

The bench, comprising president, Justice R. Regupathi, and member A.K. Ann­a­m­alai, said the bank had committed deficiency of service and directed the bank to pay a compensation of Rs 1 lakh and cost of Rs 10,000 within six weeks.