IMPORTANT POINTS
(1) Commercial Purpose - The banking services are included in the service as defined in Consumer Protection Act, 1986. The purpose of taking loan was for purchasing the property which itself cannot be said to be a commercial purpose.
(2) Disbursement of loan - RFL was not entitled for realizing EMI or charging interest prior to disbursement of the loan.

ORDER

Heard Mr. Brijender Chahar, Sr. Advocate, assisted by Mr. Nithin Saravanan, Advocate, for the complainant and Mr. Sanjeev Singh, Advocate, for the opposite parties.

2. Solaimalai Enterprises has filed above complaint for directing Religare Finvest Limited and others (the opposite parties) to (i) refund Rs.20999796/-, with interest @18% per annum, the pre-collected amount from the complainant, or (ii) adjust Rs.20999796/-, towards future monthly instalments or principal or towards interest, and (iii) pay Rs.50/- lakhs, as the compensation for mental agony and harassment, (iv) pay Rs.40/- lakhs as punitive damages, (v) pay Rs.50000/-, as the costs of the litigation and (iv) any other relief, which is deemed fit and proper, in the facts of the case.

3. The complainant stated that Religare Finvest Limited (opposite party-1) (for short the RFL) was a financial company, incorporated under the Companies Act, 1956 and engaged in the business of providing loans against property, home loans, financial assistance etc. to the general public. The complainant applied for loan of Rs.25/- crores, vide loan application, bearing ID no.631063 dated 30.06.2015 to the RFL, for purchasing immovable property from Mr. G. Nagarajan and Mrs. N. Chandra, which was approved and Facility Agreement dated 30.06.2015 was executed. The RFL opened Loan Account No.XMORS AI 00061394 and made an entry of credit of an amount of Rs.20.05/- crores out of which Rs.2285700/- was shown as charged for processing fee on 23.07.2015. Monthly instalment of Rs.2285700/- has been fixed for this amount, which was revised to Rs.3113093/-. The complainant executed simple mortgage deed of its immovable property on 16.12.2015, vide Document No.57/2016 in favour of the RFL. Then this loan amount was actually credited in the loan account of the complainant on 19.12.2015. The RFL opened another Loan Account No.XMORS AI 00061404 and made an entry of credit of an amount of Rs.5/- crores out of which Rs.570000/- was shown as charged for processing fee on 23.07.2015. Monthly instalment of Rs.776333/- has been fixed for this amount. The complainant executed simple mortgage deed of its immovable property on 22.02.2016, vide Document No.790/2016, in favour of the RFL. Then this loan amount was actually credited in the loan account of the complainant on 23.02.2016. Equated Monthly Instalments (EMI) were payable from 01.08.2016 to 01.05.2025. The RFL took 109 Post Dated Cheques from the complainant relating to its account in UCO Bank, for realising EMI. The RFL handed over Xerox copies of following cheques to the complainant on 01.07.2015 and 13.10.2015:—

4. At the time of crediting loan amount on 19.12.2015, in Loan Account No.XMORS AI 00061394, the RFL realised following amount from the account of the complainant in UCO Bank:—