Pune: In a significant ruling, the State Consumer Disputes Redressal Commission has directed India Infoline Housing Finance Limited (IIHFL) to refund ₹2,58,234, overcharged as interest and penalties on a home loan, to a customer along with 9% interest from July 2017. This decision upholds an earlier order by the Pune District Consumer Grievance Redressal Forum, delivering justice to the consumer after a prolonged legal battle.

The case began in June 2014, when financial advisor Ravindra Sahasrabuddhe, based in Pune, availed a home loan from IIHFL. Over time, he discovered multiple irregularities in the handling of his loan. These included:

• Deducting interest for the period before loan disbursement, which is unlawful.

• Charging interest even after the loan had been fully repaid.

• Imposing penalty fees, despite a clause in the loan agreement and sanction letter stating that no penalties would apply for prepayment.

• Delaying the issuance of a loan closure certificate for 137 days, despite repeated requests.

Frustrated with these practices, Sahasrabuddhe filed a complaint with the Pune District Consumer Court. In 2023, the finance company challenged the District Court's order in the State Consumer Commission. However, the State Commission upheld the earlier judgment, ordering the company to refund the excess charges and comply with the terms of the loan agreement.

Even after the appeal’s resolution, the finance company delayed compensating the customer. It was only when a warrant was issued in response to a recovery application by Sahasrabuddhe that the company submitted the compensation via demand draft to the commission.