In a significant ruling, The National Consumer Disputes Redressal Commission (NCDRC) has held ICICI Bank liable for the loss of original property documents belonging to an individual. The court found the bank guilty of deficiency in services and has directed them to pay a substantial compensation of Rs. 25 lakh to the aggrieved party.

The case, titled Manoj Madhusudhanan v. ICICI Bank Ltd. and Ors., stemmed from a consumer complaint filed under Section 21(a)(i) of the Consumer Protection Act, 1986. The complaint alleged that ICICI Bank had failed to safeguard the original title documents related to the individual's property, which had been submitted to the bank as security for a housing loan.

According to the complainant, ICICI Bank had sanctioned a housing loan of Rs. 1,86,00,000 on April 11, 2016, for the purchase of a property in Kenchenahalli, Rajarajeshwari Nagar, Bangalore. The bank retained several crucial documents, including the Registered Sale Deed, Possession Certificate, BDA Khata, and more, as security.

However, the bank neither provided scanned copies nor true copies of these documents to the complainant. When the complainant raised concerns, the bank informed him that the original papers had been lost in transit from Bangalore to its central storage facility in Hyderabad by a courier company.

Frustrated by the bank's lack of response, the complainant sought intervention from the Banking Ombudsman in August 2016. The Banking Ombudsman directed ICICI Bank to issue duplicate copies of the lost documents, publish a public notice about the loss, and pay Rs. 25,000 as compensation for the deficiency in service.

Unsatisfied with this, the complainant sought a compensation of Rs. 5,00,00,000 for the mental agony and loss he suffered due to the misplaced original documents and the bank's negligence in their duties.

The court, in its ruling, emphasized that the ICICI Bank was responsible for the custody and security of the original title documents linked to the housing loan. It rejected the bank's attempt to shift responsibility to the courier company. The Banking Ombudsman's findings of deficiency in service were upheld.

The NCDRC's verdict instructed ICICI Bank to issue an indemnity bond to the complainant, covering all the documents provided as security during the sale deed registration. Additionally, the bank was ordered to pay Rs. 25,00,000 as compensation, along with Rs. 50,000 as litigation costs, within eight weeks. Failure to comply would result in an annual interest rate of 12% being applied until the amount is realized.

Case Title: Manoj Madhusudhanan v. ICICI Bank Ltd. and Ors.

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