M G K MURTY Vs. UMESH KUMAR GOPALA

JUDGEMENT

(1.) Sri MGK Murthy, the complainant, availed a loan in the sum of Rs. 38,000/- from SBI Credit. Sri Umesh Kumar Gopala, Sr. Executive Operations GE Money and Sh. Ajay Bharathi, Asst. Vice President, SBI Cards and Payment Services Pvt. Ltd. are its functionaries. The complainant was charged interest and processing fee in advance for two years and EMI was fixed at Rs.1900/- per month for 24 months. Although, the petitioner paid the EMI regularly, yet, he was charged with penalties and he paid Rs. 1900/- in place of a negative total amount. The petitioner protested but did not get satisfactory reply. He approached the Banking ombudsman and ultimately he filed a complaint before the District Forum.

(2.) The OPs could not appear and therefore, they were proceeded against ex-parte. The Fora below came to the conclusion that in the absence of any authority imposing the penal fee and collection of processing fee is bad and arbitrary. The negligence of the OPs stood proved.

(3.) The State Commission remanded the case back to the District Forum.