Ludhiana: Consumer forum imposes

The district consumer disputes redressal commission has directed HDB Financial Services Limited, a non-banking financial company (NBFC), to compensate a city resident with ₹5 lakh after the firm lost his original property documents which were submitted as collateral for a loan.
The commission, chaired by Sanjeev Batra and member Monika Bhagat, also instructed the financial institution to formally acknowledge the loss of the documents, lodge an FIR and issue a certificate confirming the documents’ misplacement. The documents were reportedly sent to an external storage vendor in Hyderabad.
According to complainant Sanjeev Kumar Dua, a resident of Gurdev Nagar, he had taken a loan of ₹32 lakh from HDB Financial Services on April 28, 2012, using his house as collateral. After repaying the loan on January 17, 2022, Dua repeatedly requested the return of his original property documents. Despite his efforts, he faced delays and alleged threats and insults by the financial firm.
In its defence, HDB Financial Services admitted that the documents were lost. The company explained that after the loan was closed, it had contacted its Hyderabad branch to retrieve the documents but was informed that the documents were lost during an office relocation.
The firm also claimed that they made “reasonable efforts” to locate the documents including issuing a public notice in several newspapers and reporting the loss to the police on April 23, 2022.
However, the consumer forum found these actions insufficient, ruling that the loss of original property documents amounted to “deficiency in service.”
The commission emphasised the serious consequences of losing such documents including potential impacts on the property’s market value and the complainant’s ability to use it as collateral in future transactions.
The forum also referenced new guidelines issued by the Reserve Bank of India (RBI) on December 1, 2023, which require banks and NBFCs to compensate borrowers at a rate of ₹5,000 per day for delays or loss of original documents.
In its order, the commission ordered the financial firm to pay ₹5 lakh to Dua for financial loss and emotional distress within 30 days. If the payment is delayed, an 8% annual interest will be applied from the date of the order until the full amount is paid.
The commission clarified that all involved branches of HDB Financial Services share responsibility for fulfilling this order.