Legal Question in Banking Law in India

Consumer court ruling Confirmation

I am a customer of HDFC Ltd (Finance Corporation) form last 14 months,

as a bearer.

I had made an account / relation to that firm, to purchase a home.

After realising that , the interest rate for the loan amount is too

much higher than a Nationalised Bank, i made a decision to transfer

the entire remaining (Principal) loan amount to SBI ie., take over.

The HDFC Ltd is charging 3% of the balance principal as pre-closure

charges. Now the amount is more than which i have taken 14 months

back.

That is, I have taken the loan on Dec 2008 was Rs. 1,190,000/-

Now the issue is , calculations asper HDFC Ltd, i have to pay

1,211,000 approximately, including the service taxes for take over the

loan to SBI.

I read some article regarding the same from internet ,stating that

''As per consumer court ruling ( Source :II (2008)CPJ

166 ), Bank cannot charge penalty for transferring the home

loan.According to the ruling the transfer of loan is considered as

takeover and not a closure.''


Asked on 3/24/09, 5:24 am

2 Answers from Attorneys
J. Radhakrishnan independent Practice

Re: Consumer court ruling Confirmation

yes, You are right. Issue a notice through lawyer objecting to the extortionate levy for the transfer of the account to Chairman of HDFC and threatening to sue them in consumer court/Banking Ombudsman, if they don't come to any reasonable arrangement. If you don't get relief, you after paying the amount under protest and getting the loan transferred prefer complaint to Banking Ombudsman of your Region.

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Answered on 3/24/09, 8:00 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Consumer court ruling Confirmation

If the HDFC Ltd does not follow the legal situation described in your statement, you may consider filing a complaint for damages with the Consumer Forum. However, it may better to first give them a notice and demand appropriate relief which you may be entitled as per law.

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Answered on 3/24/09, 8:28 am


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