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Five months ago I repaid in full, a home loan taken by me. The bank is yet to return the original documents establishing my ownership of the house, pledged with them. They say the papers have been misplaced and they are searching for it. What is my option? I am now very worried. Firstly, send a complaint in writing to the Nodal Officer of the bank, requesting him to ensure that the original title deeds are returned forthwith. If even after that your papers are not returned, you have an option of going to the Banking Ombudsman or the consumer court for redress. The resolution of disputes before the Ombudsman is faster and simpler, but in cases such as these, I would recommend the consumer court because you need to be adequately compensated for the loss of property papers. The bank has to be held accountable for its gross negligence in losing the papers entrusted to its care. In your complaint, you should ask for the following relief: (1) the bank should take full responsibility for the loss of papers and follow the ‘due process’ required to get you a certified copy of the property papers. The ‘due process’ necessitates the bank to first file an FIR about the loss of the papers with the police; issue a public notice in an English and a local language newspaper regarding the loss and subsequently getting a certified copy from the competent authority (2) The bank should also execute an indemnity bond against any loss or damage that you may suffer on account of the loss of the title deeds . (3) Payment of damages to adequately compensate you for the loss of original papers, as the loss of such papers may well affect your future borrowings using the property as equitable mortgage. While computing the compensation, consumer courts have to factor in consequences of negligence. I pledged a property to get a business loan from a bank. The loan account has been closed but the bank is not returning my papers. Have there been such cases before the consumer courts? In C.L.Khanna vs Dena Bank ( OP No 70 of 2002, decided on September 2, 2005) , the National Consumer Disputes Redressal Commission held that failure to return the pledged papers even after the loan has been repaid, constitutes negligence in the service provided by the bank and the consumer who is a victim of such negligence is entitled to compensation. In this case, the consumer had first approached the Banking Ombudsman, who had directed the bank to get the consumer a certified copy from the competent authority and bear the entire cost involved in the process. As far as compensation for harassment and mental agony was concerned, it said that it had no jurisdiction. The consumer then sought the help of the consumer court, which directed the bank to follow the directions of the Ombudsman and in addition, pay a compensation of Rs 1 lakh, besides waiving the interest on the loan amount from June 1989 and also pay Rs 25,000 as costs. In a recent order (2012), the Uttar Pradesh State Consumer Disputes Redressal Commission took into consideration the problems that the consumer, Rajeev Kumar Jain would suffer as a result the loss of the original sale deed of his house given as equitable mortgage to LIC Housing Finance Limited and held that 85 per cent of the current value of the property should be given to the consumer as compensation.
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