Return house documents, pay Rs 1 lakh to widow: Forum to fin firm | Hyderabad News

HYDERABAD: A widow was given relief by Hyderabad District Consumer Forum-II, which directed a finance company to return her house title documents and construction plan along with a no-objection certificate (NoC) that she need not repay any portion of the 42 lakh housing loan her husband had taken.
Terming the action of Cholamandalam Investment and Finance Company for refusing to extend the benefit of insurance to S Naga Malliswari of Malkajgiri as ‘cheating’ and also an ‘unfair trade practice,’ the forum asked the company to pay a compensation of 1 lakh and legal costs of 5,000 to her.
When the finance firm tried to argue that the case would not fall under the definition of a consumer case, a bench of president Vakkanti Narasimha Rao and members PVTR Jawahar Babu and V Suma dismissed the contention and said the action of the company comes under deficiency in service.
The bench found fault with the company for resorting to unacceptable methods like overwriting, to suppress HDFC life insurance aspect and directed it to issue NOC to Malliswari and return her property documents.
According to her counsel TV Rajeswara Rao, Sunkari Venkata Narayan Vengaiah constructed a house in a 238 square yard plot in Akula Narayana Colony in Malkajgiri in 2016. He took a loan from Bank of India (BOI) and regularly paid the instalments. In 2019, an executive from Cholamandalam Finance approached him and convinced him to take a 42 lakh housing loan to improve the existing structure by transferring the loan to Cholamandalam Finance from BOI.
The new loan was granted in favour of Venkata Narayan and his wife Malliswari. Of this, 14 lakh went to BOI for clearing the balance debt. The remaining went to the couple. The couple also took an insurance policy from HDFC Life by paying 1.2 lakh for covering the housing loan. On November 14, 2020, Venkata Narayan died. Cholamandalam kept dodging returning the house documents to the wife.

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