ICICI BANK LTD. Vs. MAHARAJ KRISHAN DATTA

JUDGEMENT

(1.) The complainants availed home loan to the extent of Rs.13,35,100/- from the petitioner-ICICI Bank for purchase of a flat in Zirakpur. The loan was sanctioned vide letter dated 14.11.2005 and according to the complainants it carried interest @ 7.25% per annum. According to the complainants, the petitioner bank later confirmed that with effect from April, 2006, the loan would carry interest @ 7.75% per annum. An additional loan of Rs.3,00,000/- was sanctioned to the complainants on 30.10.2006 and the said loan, according to the complainants, carried an obligation to pay interest @ 8.75% per annum. Expressing a grievance that instead of charging interest at the agreed rate, the bank had charged the same @ 11.25% p.a. for the period from 01.4.2007 to 31.3.2008, besides charging interest during pre-EMI period @ 9.5% per annum, the complainants filed a complaint before the concerned District Forum, alleging deficiency in the service provided to them by the petitioner-Bank.

(2.) The complaint was resisted by the bank on the ground that the loan was sanctioned on the floating rate of interest, which at the time of sanction was 8.75% per annum and could be enhanced as per the guidelines issued by the Reserve Bank of India and in accordance with the agreement between the parties.

(3.) The District Forum vide its order dated 10.07.2009, directed the petitioner-bank to charge interest from the complainant @ 7.25% per annum upto 31.3.2006, 7.75% per annum for the period from 1.4.2006 to 30.10.2006 and thereafter, @ 8.75% per annum. It was also directed that the enhanced rate of interest shall not be more than the rate at which loan is advanced to the new borrowers. The petitioner bank was also directed to pay Rs.10,000/- as compensation to the complainant, alongwith interest @ 12% per annum.