Sambalpur: PNB Faces Legal Consequences in Consumer Court: Directed to Pay Rs.77 Lakhs
Sambalpur: Punjab National Bank is facing consequences for granting a loan on land without proper documents. The bank’s attempt to sell the land to another person after the borrower failed to pay the loan, as well as being unable to sell the land after knowing the truth, has resulted in legal consequences.
Oriental Bank of Commerce (now Punjab National Bank) issued a loan to an individual for business purposes on land leased by SDA, unknowingly accepting a fake NOC submitted by the borrower. However, when the borrower failed to repay the loan, the bank attempted to sell the same land to another individual, Chandan Sahu of Mohantypada in Sambalpur Badabazar, for Rs.13.30 lakhs in 2019.
After finding the truth about the land, the bank authorities did not register it in Chandan’s name or explain their inactions after receiving payment. Following unsuccessful attempts to resolve the matter, Chandan sought justice from the Reserve Bank of India (RBI). Subsequently, upon RBI intervention, the Punjab National Bank admitted to the facts surrounding the incident and agreed to refund the money to Chandan.
However, dissatisfied with the bank’s refusal to compensate him for the current market value of the land, Chandan approached the District Consumer Court. The consumer court ruled in Chandan’s favor, ordering him to pay the current market value of the land, set at Rs. 57 lakhs, within one month of the order. Failure to comply will result in a 12 percent interest charge. Additionally, the commission directed the bank to pay a compensation of Rs. 20 lakhs and an additional Rs. 50 thousand towards the case handling costs.
Senior lawyer P.P. Panigrahi represented Chandan in the case, bringing justice to this financial dispute.
