I foreclosed loan from a Housing Finance Company (HFC) on 23/10/10 from own sources. The loan was availed in 'individual' capacity. The HFC levied 2% penalty for foreclosure. Then I got legal advice that in absence of RBI directive prohibiting foreclosure penalty, I had no choice but to pay this penalty as per loan agreement.
Recently I learnt that said HFC actually comes under direct purview of National Housing Bank (not RBI); and NHB circular dated 18/10/10 prohibited levy of said penalty 'with immediate effect' for foreclosure by 'individual borrowers' financed from own sources. On approaching said HFC, it refused to refund this sum, stating "penalty was applicable on date of foreclosure (i.e. 23/10/10)". In parallel, I got legal advice that I have already missed the bus, because of not approaching consumer court within 2 years from cause of action (i.e. by 22/10/12).
Do I have remedy available, considering penalty was levied in violation of NHB directive?