Bank not releasing original property documents.
ARUN JOGALEKAR
(Querist) 24 July 2013
This query is : Resolved
Dear Sir,
We have switched our bank accounts, and the bank has charges us unjust closing /renewing charges, for which after protests, then bank has offered to waive off -50%.This offer was not accepted by us.
The bank is now holding on to our original documents given as collateral, and also not issuing a "NO DUES CERTIFICATE ", ,and they have verbally informed us that , we need to accept this 50% offer for release of documents and no dues certificates.
What is the recourse available to us, to release our property documents. The banking ombudsman, will not entertain any complaints, till one month has lapsed.
Please advise,
Sudhir Kumar, Advocate
(Expert) 24 July 2013
very vague query.
which accounts you are talking about/
what charges are levied?
how charges are unjust?
what original documents are there?
how/why these document reached bank
ARUN JOGALEKAR
(Querist) 25 July 2013
Dear Sir,
For your information :
1. Working capital limits expired on 12th,MARCH,2013 as per banks sanction letter.
2. Till the 9th, of June, even after repeated verbal and email reminders for renwal
Limits were not renewed.
3. Decision was taken to switch to another bank, and accordingly bank was informed by email on the 9th,of June.
4. The bank, replied by email, that the limits have been renewed at its own terms.
5. The bank was replied that the terms of renewal were not acceptable, and accordingly account was clsed by paying the bank the outstanding .
6. The bank charged prepayment charges and processing fees for limit renewal ,
Citing the 2% prepayment clause in the sanction letter ,which clearly mentioned that the limits, were due to be renewed on the 12th,MARCH,2013.
7. The bank officer verbally cited the reason that since limits even though it was not renewed,continued to be used from12th,MARCH,2013 onwards till the date of closure, and hence charges were applicable on pro-rata basis.
8. The bank had not issued any renewal letter, nor had it taken any signature of acceptance for renewal of limits.
9. After much protest, for this unjust and unilaterally decided charges, the bank offered to waive 50% off on these charges.
10. offer of 50% was not accepted, and it was asked of the bank to release the original property documents, and a “NO DUES CERTIFICATE “ , since there was no outstanding towards the bank, since all charges, as per the bank,has already been debited to the account.
11. The bank is not releasing the release the original property documents, and a “NO DUES CERTIFICATE ,and the offices have verbally informed, that the 50% waiver offer has to be accepted to release the said documents.
Please advise, the recourse available against this arm twisting by the bank.
The banking ombudsman, has informed, that a period of one month, has to lapse, before they can intervene.
Advocate Sastry
(Expert) 25 July 2013
Looks like a repeated query under different caption
ARUN JOGALEKAR
(Querist) 25 July 2013
what is your view on non release of originals.
Rajendra K Goyal
(Expert) 25 July 2013
The query was posted at
http://www.lawyersclubindia.com/experts/Wrong-charges-by-bank--405691.asp#.UfE9dm2Lq_I
any subsequent query in the matter should have been posted in same thread, you have started new thread.
1. You may write to their Head office and can personally meet the senior executives.
2. If the problem is not solved write to RBI.
3. Also send legal notice to Manager and higher officers whom you have met and to the chairman of the Bank.
4. In case no solution is received lodge a complaint either to Consumer forum or Parmanant Lok Adalat (Public Utility service)
