SBI Fined for Losing Property Documents

The Rangareddy District Consumer Commission has imposed a penalty on the State Bank of India (SBI) for losing original property documents submitted by a customer. The commission directed SBI to pay ₹3 lakh as compensation and ₹20,000 towards legal expenses to complainant B. Venkatesham. He had taken a ₹5 lakh home loan from SBI’s Adibatla branch and deposited the original sale deed and link documents of a 194-square-yard plot in Bairamalguda as additional security.

After repaying the loan in March 2022 and obtaining a no-dues certificate, Venkatesham requested the return of his original documents. However, the bank informed him that the documents were missing and provided only certified copies. He then approached the consumer commission. While SBI argued that it had lodged a police complaint and provided alternative documents, the commission ruled that Venkatesham had full rights as the loan account holder and held the bank responsible for negligence. The commission ordered SBI to compensate the customer for the loss caused.