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Consumer Case

(Querist) 09 January 2009 This query is : Resolved 
Please any one guide me

In a housing loan, the banks will be increased the rate of interest immediately, once the RBI increased the rate of interest, but the banks will not decrease the rate of interest, if the RBI is decreased the rate of interest? can i approach the consumer forum???
Guest (Expert) 10 January 2009
Yes. You should approach the consumer forum. It would be beneficial not only to you but also for several people. If you are an advocate, kindly think to approach the High Court under writ jurisdiction also, if the Bank is controlled by Central Government and State Government. Otherwise, you approach the consumer forum, which is cheap and suits for your need. Any further free assistance you are most welcome.

Prabhakar
karlprabhakar@gmail.com
P.Balasubramaniam (Querist) 10 January 2009
Thank you Mr.Prabhakar.
RAKHI BUDHIRAJA ADVOCATE (Expert) 10 January 2009
Very right Sir, I do agree with you, respected Sir.
J. P. Shah (Expert) 11 January 2009
THE RATES OF INTEREST ON DEPOSITS AND LOANS ARE NOT CONTROLLED BY RBI AND IT DOES NOT GIVE DIRECTIONS TO BANKS. DUE TO LIBERALISATION, THESE POWERS ARE NOW WITH INDIVIDUAL BANKS AND THEY DECIDE BASED ON MARKET FORCES AND ARE LINKED TO PLR OF EACH BANK. RBI HAS FORMULATED A POLICY WHICH THE BANK FOLLOW. ACTUAL RATES ARE WORKED OUT BASED ON POSITION OF INDIVIDUAL BANKS AS TO COST OF FUNDS, MARKET FORCES, DEMAND AND SUPPLY OF MONEY ETC. HENCE LEGALLY HIGH COURT OR CONSUMER FORA WILL NOT INTERFERE, UNLESS THE RATES ARE EXORBITANT. RATES ARE COMMERCIAL DECISIONS OF BANKS.
Guest (Expert) 11 January 2009
While agreeing with Mr. J.P. Shah, I say that the high court in writ jurisdiction and consumer fora may not be enthusiastic to interfere in these matters, I further add that the contractual provision between the bank and the borrower is oppressive in nature and violative of S.23 of the Contract Act and hence, the court of law has to be pursued in that direction. It is difficult but not impossible.

Prabhakar
MANISH (Expert) 14 January 2009
Dear Sir,
In the present case, you may not have option to go to any consumer fora or to the high court, as has been held by Sh. J.P. Shah; as here the question relates to that of Contract.
However, a PIL may be filed by some person who is not interested party in this regard in High Court for the issuance of appropriate writ, direction or order.


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