Not releasing sanctioned loan by bank is unfair trade practice

"The conduct of the bank makes out a case of unfair trade practice, mal-practice, arbitrariness and gross deficiency in service on its part who even during inquiry proceedings failed to place on record the decision of the competent authority that the loan sanctioned to the complainant was not to be released," the West Delhi District Consumer Forum said.
The Forum passed the order on a petition by Air Force Wing Commander Brij Mohan Tyagi seeking refund of Rs 1.46 lakh which he had to pay to the housing society for delay in payment due to bank's failure to release the sanctioned loan.

Granting relief to Tyagi, the Forum also imposed a cost of Rs 10,000 on the bank for not informing him that the sanctioned loan amount would not be disbursed causing him to incur financial loss.

"At the very outset, we would like to observe that this case is an example of unfair trade practices, mal-practices resorted to by the bank.

"One fails to understand that when the loan was admittedly sanctioned to the complainant (in 2007) and he was even re-assured vide regret letter (in 2008), why ICICI bank failed to release the sanctioned amount," the Forum said.Tyagi purchased a flat from Khusboo Co-op Group Housing Society in Gurgaon for Rs 25 lakh.

The officer paid Rs three lakh in advance and the rest of the payment was to be made by the ICICI bank but it did not disburse the amount even after sanctioning the loan following which he moved the Forum for relief