HDFC to pay over Rs 54K for deficiency in service

HDFC Bank has been asked by a consumer forum here to pay over Rs 54,000 to a man for wrongly repossessing his motorcycle and reselling it, while terming it as "deficiency in service".
West Delhi District Consumer Disputes Redressal Forum, presided by Bimla Makin, has asked the bank to pay the money to north Delhi resident Durga Prasad, noting that the motorcycle was already sold.
"The manner in which the vehicle was repossessed and disposed of smells of malifide intentions and deficiency in service on the part of the Opposite Party (bank), complainant had already deposited Rs 34,960 towards the instalments of the vehicle which was disposed of by the respondent for a petty sum of Rs 20,000 and even after adjusting loan amount nothing was paid back to the complainant," the forum said.

"Hence, to meet the ends of justice, we hereby order that OP shall refund sum of Rs 34960, already received by it from the complaint and shall pay a compensation of Rs 20,000 to the complaint which shall be inclusive of litigation expenses," it said.
Prasad had told the forum that he took a loan of Rs 33,855 from bank for purchase of a motorcycle, and had to pay 24 EMIs of Rs 1840.
However, after paying 34,960 in 19 instalments, he went to his native village due to some family problems and in his absence, the motorcycle was repossessed by the bank without any information or notice, as five instalments were still due.

After his return from village, Prasad approached the bank and assured it to make the balance payment.

Even after contacting different departments of bank, he was asked in January, 2009 to deposit Rs 26,630 failing to which he was threatened that his bike would be sold, which was later sold.
Aggrieved by this, Prasad approached the forum seeking a direction to the bank to return him the motorcycle and also to grant any other relief.
The bank, however, said that Prasad was a persistent defaulter and at least 15 cheques issued for the payment of monthly instalment bounced.
Prasad paid some of instalments in cash but a sum of Rs 17,855 was outstanding as on January 16, 2009, adding that vehicle was surrendered by him in accordance with terms of agreement and was later sold in a bid, the bank said.