Consumer Commission slaps fine on Bank of Baroda for failing to provide subsidy under Awas Yojana

26 Jun 2023 , 10:22 AM

A district consumer commission has ordered the Bank of Baroda to pay Mohali residents Rs 1.15 lakh for failing to provide them with benefits under the Pradhan Mantri Awas Yojana.

Abha Dobriyal and Om Parkash, a couple residing in Mohali, filed a complaint alleging that they secured a housing loan amounting to Rs 50 lakh from the Bank of Baroda on October 8, 2018. They also claimed to have submitted the required documentation to the bank in order to be eligible for a subsidy offered by the Pradhan Mantri Awas Yojana. Despite the lengthy wait, the complainants received no useful response.

As a result, they filed a complaint alleging a lack of service and unfair trade practices on the part of the bank, resulting in financial loss, harassment, and mental anguish.

In its response, the Bank of Baroda stated that the complainants never approached about the scheme, claiming that no application or documents were provided to them. According to the bank’s response, the complainants may have applied for the scheme online, but they have no knowledge of any such application.

In response, the Housing and Urban Development Corporation Limited (HUDCO) stated that the Bank of Baroda uploaded the subsidy claim of the complainants on July 23, 2020. 

However, the claim was rejected by HUDCO’s portal due to two reasons: an incorrect installment number and a discrepancy between the cumulative loan disbursement and the loan disbursement provided until the previous installment. HUDCO accused Bank of Baroda of failing to upload the revised claim form.

According to the District Consumer Disputes Redressal Commission of Chandigarh, the Bank of Baroda failed to remove the objection or query raised by the HUDCO concerning complainants’ applications and also failed to upload the revised claim form.

As a result, the district commission ordered the Bank of Baroda to pay the complainants Rs 1 lakh in compensation for deficient services, as well as Rs 15,000 in litigation costs.

For feedback and suggestions, write to us at [e-mail]