Makes excess disbursement to builder, ignoring construction progress. Pays Rs.17.2 lakhs against demand of Rs.8.8 lakhs made by builder.
Charges interest from borrower on excess disbursement made on its own.
On intimation of error by borrower, refuses to correct its stand.
On insistence and persuasion by borrower takes refund from builder.
Does not correct its books, to hide error, and treats the refund as pre-payment of loan by borrower.
As refund is treated as pre-payment, it reduces disbursement eligibility of borrower.
Holds up subsequent disbursement request by borrower, as limit reduced on account of wrong adjustment as loan pre-payment.
Refuses to regularize loan account of borrower, despite issue arising out of error at LIC HFL.
Even after Loan settlement/ closure, refused to entertain requests towards - Non refund of excess amount settled and parked by LIC to a suspense account, Non return of some documents taken to get the loan processed.
In consumer court, claims legal right to disburse amount it deems fit, irrespective of demand letter from builder. Claims used discretion to disburse more. Since, borrower forced to take refund, treated refund as pre-payment.
Above statement indicates intentional act in making excess disbursement.
Puts before Consumer Court that since it had legal right as above, Complainant has put a false case and same should be dismissed along with cost to borrower.
Refuses to entertain, basic right of borrower to have a copy of loan agreement(made to counter the claim of legal right).
Claims loan agreement is their internal document, which cant be shared with the borrower.
Puts wrong presentation of facts to NHB(National Housing Bank - Their regulator), to get the complaint filed against them closed.
Later admits in court that there were errors at their end and they need an opportunity for mediation with complainant. Details posted at:
https://mouthshut.com/blog/dccdntptsm/-LIC-Housing-Finance-LIC-HFL-Housing-Loan-issues