IMPORTANT POINT
Original property documents are very valuable and essential documents for owner of a property and its non-availability with him brings many adverse impacts/consequences.

ORDER

The present Consumer Complaint (CC) has been filed by the Complainant against Opposite Party (OP) as detailed above, inter alia praying for directions to the OP to:—

(i) Pay the compensation for a sum of Rs.61,73,004/- for deficiency in services, wilful negligence, unfair trade practices and restrictive trade practices;

(ii) Return the complainants deposited original title documents or to pay the complainant entire loan amount foreclosed by LICHFL as the complainant is unable to meet the declaration given to LICHFL to handover the documents within 30 days timeline;

(iii) Pay twice the current market valuation of the complainant property for the irreparable loss caused to the complainant for a sum of Rs. 3,62,40,626/-.

(iv) Pay 13% interest p.a. till the realization of the compensation and damages awarded if any;

(v) Pay the litigation expenses and cost.

2. Notice was issued to the OP on 15.07.2020. Parties filed Written Statement/Reply, Rejoinder, Evidence by way of an Affidavit and Written Arguments/Synopsis etc. as per details given below.

3. It is averred/stated in the Complaint that:—

(i) The complainant obtained a housing loan with Loan A/c No. HHLBAG00121623, dated 03.09.2012, amounting to Rs. 29,93,153/-. This loan facilitated the acquisition of a plot, and the complainant entrusted Indiabulls Housing Finance Ltd. (IBHFL) with the original title deeds, expecting their safekeeping and return within the stipulated 30-day timeframe as per RBI guidelines. Subsequently, the complainant acquired a Composite Loan (A/c No. HHLBAN00226520) of Rs. 39,20,788/- for construction, with a commitment to commence within two years. These loans were consolidated into a new account, HHLBAN00315577, dated 16.02.2017, with an outstanding balance of Rs. 65,88,187/-. An additional Top-up Loan of Rs. 15,00,000/- was also secured. The complainant alleges IBHFL engaged in unfair practices by significantly increasing the Rate of Interest (ROI) without prior notice. The ROI for Loan A/c No. HHLBAN00315577 rose from 8.7% to 11.2%, and for Loan A/c No. HHLBAN00387974, it increased from 8.4% to 10.9%, spanning April 2018 to July 2019. This lack of disclosure deprived complainant of informed decision-making regarding options like foreclosure or balance transfer.

(ii) That IBHFL engaged in unfavorable practices related to online loan accounts and concealed the Rate of Interest (ROI) field, preventing access to crucial information. Despite multiple requests, IBHFL failed to provide sufficient evidence of communications about Rate of Interest (ROI) increases, contravening RBI guidelines. The complainant, seeking to transfer loans to L.I.C. Housing Finance Limited (LICHFL), obtained approval for a Rs. 76,00,000/- housing loan, conditional on IBHFL promptly furnishing original documents. The IBHFL’s response to their Foreclosure Letter request was evasive, suggesting delay tactics to hinder successful loan transfer to LICHFL.

(iii) That LICHFL partially disbursed and fully settled the outstanding loan amount of Rs. 61,73,004/- with IBHFL. This transaction involved two cheques: one worth Rs. 57,82,378/- and another valued at Rs. 3,90,626/-. These cheques were submitted to IBHFL on 22.10.2019. That despite meeting all EMI obligations and making substantial interest payments, IBHFL failed to promptly transfer the original title docu