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betty (executive)     19 January 2015

Bank negligence

I have finalized an independent property which builder is constructing in a Gram Panchayat Location.  The same I explained to a banker.  Banker confirmed to provide a home loan for independent house in a gram Panchayat and collected all the documents with processing fee in the month of august 2014 and given a sanction letter in September 2014. Basing on the sanction latter builder started construction house. As per agreement at the time of construction completing 50% I have to pay 50% of the property valued.  If delay in payment then builder will charge 3% on the payment.  Builder completed 50% construction November 2014, requested for the register the property with paying 50% amount. I requested banker to release funds.

Executive of bank was resigned, new executive came collected all documents on December 2014. After few days executive said there is a technical disturbance it will clear soon mean while we will complete disbursal agreement. I have submitted with 900.00 franking charges.

That technical team not approved my file. Every day they will ask some clarification when I call to them and they will say finally technical team approval pending. I have contacted sales manager ,his reporting manager & regional manager. Till now kept pending with technical team for approval.  

Builder is getting angry. Banker is not understanding situation & not responding positively.  I am completely blank. Kindly  help.


 8 Replies

Dr J C Vashista (Advocate)     19 January 2015

Contact the bankers and a local lawyer.  Once the loan has been sanctioned and part amount disbursed the bank has to release otherwise file a complaint before Banking Ombudsman.

naveen arya (member)     19 January 2015

Agree with Dr Vashishta.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     19 January 2015

You can give complaint online to banking ombudsmen. or mail to them. Mail with all details with references communication to your banker.

G.L.N. Prasad (Retired employee.)     19 January 2015

Whether the Bank is Nationalised or Private sector Bank file an application seeking information as follows:

1.If it is nationalised seek information under RTI Act by payment of RTI fee Rs.10/- at Counter or through Indian Postal order fvg. that bank.

2.If the bank is not nationalised, seek information under CP Act.

Seek information as follows:

Brief Facts: Home Loan Account No:....................Name of Borrower:;................................request for release of 50%amount on completion on.............................Bank not disbursed even after inspection.  Builder refusing to further proceed on work and demanding interest at 3% on agreed terms.  Notice for deficiency of service.


1.Please provide me the time frame within which Bank is obliged to release 50% amount from date of his request.

2.Please inform the date of such request, date of inspection, and all office notes till date for not releasing 50% of amount as per progress of construction.

3.Please provide such letters, responses so far given to borrower about the urgency of releasing the payment to burden of payment of 36% interest.

4.Please finally provide specific reason for such in ordinate delay, the name, designation and mobile No of the officer responsible for ensuring service to this Home Loan account.

5.Please provide present status and probable date of release wthin 15 days from receipt of this application in view of urgency.


Wait for 30 days and file complaint to DIstrict Consumer forum through a competent advocate seeking compensation for deficiency of service  or complete your part of obligations to Banker in response to the information  or file complaint before Banking Ombudsman whose address must be available either on your pass book or must have been displayed in Bank notice board.

J. P. Shah (RTI & CONSUMER ACTIVIST)     19 January 2015

It is advisable to lodge representation to Head Office of the Bank by email and in hard copy by speed post. Details are available on website. Ombudsman will take more than a year. It is better to sort out within bank through intervention of higher officers. Do not make issue legal at this stage, since bank will then not take any action and maintain status-quo till matter is legally sorted out at the forum. You know delay it various legal forums [Ombudsman, consumer courts or civil courts etc].

T. Kalaiselvan, Advocate (Advocate)     21 January 2015

Take the advise of Mr. J.P.Shah.  It is found to be more suitable to the given situation.  Do not linger around the legal forums so soon lest you may have to do only legal proceedings and not pursue the construction work.  You may approach the higher official of the bank in the event of necessity.

G.L.N. Prasad (Retired employee.)     22 January 2015

Try to add value to the discussion, with your each post.

G.L.N. Prasad (Retired employee.)     22 January 2015

This is the query

'I have contacted sales manager ,his reporting manager & regional manager. Till now kept pending with technical team for approval.  

Builder is getting angry. Banker is not understanding situation & not responding positively.  I am completely blank. Kindly  help."

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