IMPORTANT POINT
Consumer – A person will not cease to be consumer after purchasing the goods or availing service.

ORDER

Heard Mr. Sukumar Pattjoshi, Sr. Advocate, assisted by Mr. Akshay Dev, Advocate, for the complainant and Mr. Aniruddha Choudhury, Advocate, for the opposite parties.

2. Rajesh Monga has filed above complaint for directing Housing Development Finance Corporation Limited and others (the opposite parties) to (i) refund Rs.17402465/-, with interest, the excess amount realized from the complainant, (ii) pay Rs.150000/-, as the compensation for mental agony and harassment, (iii) to pay Rs.150000/-, 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 Housing Development Finance Corporation Limited (opposite party-1) (for short the HDFC) was a financial institution, incorporated under the Companies Act, 1956, Mr. Chandra Shekhar (opposite party-2) and Mr. S. Ganapathi (opposite party-3) were its Direct Sales Agent and Resident Manager, respectively. The complainant was in need of home loan. Mr. Chandra Shekhar approached the complainant, in last week of August, 2005 and thereafter, continuously followed up with the complainant in convincing that the rate of interest on home loan of the HDFC was lesser than ICICI Bank. Mr. Chandra Shekhar, vide email dated 05.10.2005, posted a chart, depicting charges on prepayment, interest calculation, delay payment, reschedulement tenure, bounce and rate of interest, on home loans of the HDFC and ICICI Bank and by this chart he represented that home loans from the HDFC was cheaper than ICICI Bank in all respect. He assured also that rate of interest would be changed on change of Prime Lending Rate by Reserve Bank of India. Believing upon the representation of Mr. Chandra Shekhar, the complainant applied for home loan for Rs.35000000/- to the HDFC, which was sanctioned and Loan Agreement was executed on 11.01.2006. The said amount was disbursed to DLF Universal Limited/DLF Limited in instalments from January, 2006 to December, 2007. Loan Agreement provided for an interest @7.25% and margin of 3.5%. It was contrary to the promise made by Mr. Chandra Shekhar. Opposite party-1, vide letter dated 01.05.2006, informed that rate of interest was revised to 8.25%, although Reserve Bank of India did not change Prime Lending Rate during 11.01.2006 to 01.05.2006. The complainant approached Mr. S. Ganapathi on 29.05.2006 and raised his protest to the letter dated 01.05.2006. Mr. S. Ganapathi asked the complainant to call again on 02.06.2006 and on that day he would explain letter dated 01.05.2006. On 02.06.2006, Mr. S. Ganapathi asked the complainant to talk with one Mr. P.C. Srivastava. Then, the complainant tried to talk with Mr. P.C. Srivastava several times and all the times, he was informed that Mr. P.C. Srivastava was on leave. The complainant gave a written protest, vide letter dated 12.06.2006, against enhancement of interest without any change in Prime Lending Rate. The HDFC revised the rate of interest to 8.75%, vide letter dated 01.08.2006, again revised the rate of interest to 9.25%, vide letter dated 01.02.2007, again revised the rate of interest to 10.5%, vide letter dated 03.05.2007, although Reserve Bank of India did not change Prime Lending Rate. The complainant gave a legal notice dated 27.09.2007, to return the amount of interest charged above 7.25% per annum. The HDFC, vide notice dated 09.10.2007, replied that under Loan Agreement, the complainant had opted for ‘Adjustable Rate of Interest’ as such the rate of interest was varying as per Retail Prime Lending Rate of the HDFC. The complainant filed CC/338/2008 before District Consumer Disputes Redressal Forum-II, New Delhi, for directing the HDFC to return/adjust the amount of interest realized above 7.25% per annum. The HDFC filed its written reply and evidence in this complaint. Reserve Bank of India issued Circular No. DBOD.No.Dir.BC.5/13.03.00/2011-12 dated July 1, 2011, consolidating earlier directives for the rate of interest on advances