ORDER

Challenge in this Revision Petition by the Petitioner Bank/Opposite Party in the Complaint, is to the order dated 14.3.2018, passed by the State Consumer Disputes Redressal Commission, West Bengal, Kolkata (for short “the State Commission”) in First Appeal No.A/4/2017. By the Impugned Order, the State Commission while upholding the finding of the District Consumer Disputes Redressal Forum, Murshidabad at Behrampore (for short “the District Forum”) on merits of the case, has modified its Order dated 04.01.2016 to the extent that the Petitioner shall pay a compensation of Rs.2,00,000/- to the Complainant in lieu of depositing fine @ Rs.50/- per day with the Consumer Legal Aid Account.

2. Facts, giving rise to the filing of the Complaint, are that the Complainant/Respondent herein obtained a loan under Prime Minister’s Employment Generation Programme (for short, “the PMEGP”) from the Petitioner Bank for Mustered Oil and Spices which was subsequently revised to Spices and Atta Chhakki. According to him, the loan amount sanctioned was Rs.5,00,000/- and subsidy was Rs.1,75,000/-. However, the Petitioner Bank disbursed only a sum of Rs.1,50,000/- to the Complainant, which was not helpful to him to start his business or to implement the scheme. The Complainant requested the Petitioner Bank for release of the balance amount but in vein. Alleging deficiency in service on the part of the Petitioner Bank, Complaint was filed before the District Forum for a direction to the Petitioner Bank to release the balance amount of the sanctioned loan and to pay compensation of Rs.5.00 lakh for harassment and mental agony.

3. Upon notice, the Petitioner Bank contested the Complaint by filing its Written Version, whereby all the allegations made in the Complaint were denied. It was further stated that the Complainant was not a ‘Consumer’ as he applied for loan for Commercial Purpose to start his business and not to earn the livelihood by way of self-employment; Complainant applied for a term loan of Rs.3.00 lakh and working capital by way of Cash Credit of Rs.1.75 lakh; Complainant has arranged the land and building shed from his own contribution on the basis of Lease Agreement dated 26.03.2011; the amount of Rs.1,50,000/- was disbursed to the Complainant for purchase of plant and machinery and other fixed assets, however, the Complainant had violated the banking norms by diverting the said amount and did not purchase the plant and machinery; the Project was under Government Scheme and as per norms, a sum of Rs.1,75,000/- was to be disbursed as subsidy to the Complainant by the Petitioner Bank after successful completion of the Project; since the Project was not completed, the amount of subsidy was not released to the Complainant.

4. On appraisal of the material available on record and the evidence adduced by the parties before it, the District Forum came to the conclusion that there was deficiency in service on the part of the Petitioner Bank in not disbursing the balance amount of the sanctioned loan to the Complainant on the ground that the amount of Rs.1,50,000/- released to him as Ist Phase installment of loan, was not utilized for purchasing of plant and machinery as per the norms of the PMEGP”. Accordingly, the District Forum, while allowing the Complaint, has directed the Petitioner Bank to release the balance amount of sanctioned loan to the Complainant within a period of 60 days from date of its order failing which the Petitioner Bank was liable to deposit a sum of Rs.50/- per day as find with the Consumer Legal Aid Account for the delay. The District Forum observed as under:—

“Perused the record, we observed that the complainant has a sanctioned loan for mustered oil and spices later which was changed a Spices & Atta Chaki form the Directorate of Micro and Small Scale Enterprises, DIC, Murshidabad through the OP with a sum of Rs.5,00,000/- is admitted fact. The loan amount sanctioned was a sum of Rs.5,00,000/- and subsidy was of Rs.