The Hindu : Karnataka / Bangalore News : Consumer court fines bank for going back on loan release

Online edition of India's National Newspaper
Thursday, Feb 01, 2007
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Karnataka

Karnataka - Bangalore

Consumer court fines bank for going back on loan release

Staff Reporter

The bank refused to release loan after applicant's cheque was dishonoured

BANGALORE: The Karnataka State Consumer Disputes Redressal Commission has directed a bank to pay compensation for not releasing the sanctioned loan amount. Basavaraj Muddebihal of Bagalkot applied to ICICI Bank, Hubli, for a loan of Rs. 3.75 lakh for house construction. After scrutinising the documents, the bank sanctioned the loan in July 2004. The amount was to be released after construction of the building up to plinth level.

Mr. Basavaraj completed the construction up to the desired level and approached the bank. Without assigning any reason, the bank refused to release the amount. Mr. Basavaraj then approached the District Consumer Disputes Redressal Forum.

The bank contended that the loan amount was not released as the cheque for Rs. 1,875 given by Mr. Basavaraj along with the loan application was dishonoured. The Commission found that the bank had not brought this to the notice of Mr. Basavaraj. The Commission asked the ICICI Bank to pay Rs. 25,000 as compensation.

Doctor pulled up

In another case, the State Commission has asked a Dharwad-based doctor to pay compensation for prescribing drugs despite his incompetence to do so.

The Commission found that Satish V. Kaniaha, a homoeopath, had prescribed allopathic medicine.

It found that Mr. Kaniaha was not authorised to even prescribe homeopathic medicine.

Vijayalakshmi S. Sultanpuri, a dental student, approached Mr. Kaniaha with complaint of fever.

Kaniaha prescribed Lyrocin, Ciprotex, Licoplex tables and tone-up tonic. Consuming the drugs, Ms. Sultanpuri developed redness, swelling of lips and rashes in palms.

A complaint was filed with Dharwad District Consumer Forum, which rejected it.

On appeal, the State Commission found that Mr. Kaniaha had prescribed the medicines.

It went through the evidence of two persons who had taken treatment from Mr. Kaniaha.

The State Commission found that Mr. Kaniaha had not done the four-and-a-half year Bachelor of Homeopathic Medicine and Surgery (BHMS) course necessary for practising as Homeopathic doctor.

It was necessary to prevent the practice of persons competent in homeopathic medicine prescribing allopathic medicines.

The Commission directed Mr. Kaniaha to pay compensation of Rs. 25,000 within the next two months.

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