Sambalpur: State Bank Penalized with Rs. 10 Lakh Compensation by Sambalpur Consumer Court
Sambalpur: In Sambalpur, Odisha, the State Bank of India (SBI) was ordered to pay Rs. 10 lakh in compensation by the District Consumer Disputes Redressal Commission, also known as the consumer court. The ruling was in favor of Divya Kishore Meher, a resident of Bhikhampur near Paramanapur, who filed a complaint against the bank.
Details of the Dispute
Divya Kishore Meher had taken a loan of Rs. 7.5 lakh from SBI’s Sambalpur ADB branch to buy a tractor and trailer. However, when he missed one loan installment, the bank seized the vehicle. The bank also approached a commercial court over the matter and eventually auctioned the vehicle without properly informing Meher about the sale or the sale price. Upset with the lack of transparency, Meher filed a complaint in the consumer court.
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Consumer Court’s Order
The consumer court heard Meher’s complaint, which argued that the bank had not followed due process and had failed to keep him informed about critical actions taken on the loan default. The court ordered SBI officials, including the ADB branch manager, regional business office head, zonal DGM, and Bhubaneswar headquarters general manager, to compensate Meher. The compensation amount was set at Rs. 10 lakh, along with Rs. 20,000 to cover litigation costs.
The court also required the SMC to pay the compensation within one month. If the payment is delayed, the SMC is required to pay an additional 12% interest on the compensation amount until it is settled.
Legal Representation
Lawyers Satyabrata Dash and Prateek Mahapatra represented Divya Kishore Meher in court. The court’s decision holds the responsible SBI officials accountable for the mishandling of the case.
