CHANDIGARH, April 10 — The UT State Consumer Disputes Redressal Commission has ordered ICICI Bank to pay Rs 70,000 each to two consumers for failing to notify them of changes in loan interest rates over several years.
The ruling came in response to appeals filed by Rajiv Aggarwal and Kamal Goel, both residents of Panchkula, who sought higher compensation than what was previously awarded by the District Consumer Commission. They were represented by advocate Pankaj Chandgothia.
The District Commission had earlier found the bank guilty of deficiency in service and awarded Rs 7,000 each as compensation and an equal amount toward litigation costs. Dissatisfied, both complainants appealed to the State Commission for enhanced relief.
The bank maintained it had informed the borrowers about the changes in the interest rates. However, Chandgothia argued that the bank failed to provide any documentary evidence or proof of dispatch of such communications.
By not notifying customers, the bank denied them the opportunity to manage their loans or switch to more favorable terms with other lenders, Chandgothia said. “This lack of transparency caused mental agony and financial hardship,” he added.
The State Commission, comprising Justice (Retd.) Raj Shekhar Attri and Member Rajesh Arya, ruled in favor of the consumers, stating: “Looking to the harassment and mental agony suffered by the complainants on account of the above deficiency in service, we are of the concerted view that the compensation and cost of litigation awarded by the District Commission is on the lower side, which needs to be enhanced suitably.”
The commission directed ICICI Bank to pay Rs 20,000 as compensation and Rs 15,000 as litigation costs to each complainant, revising the total payout in both cases to Rs 70,000.
