Pittar Chand had moved the consumer forum stating that he had requested for a loan of Rs 5 lakh with 15 per cent interest. He said he had signed various papers besides issuing 12 blank cheques as guarantee.  The bank, however, sanctioned a loan of Rs 4 lakh at the rate of 18 per cent per annum. He said he refused the loan and asked the bank officials to return the blank cheques, which they did not. Chand said despite the fact that the loan was not granted, the bank started recovering EMIs.

The bank admitted its mistake and said it was ready to refund the EMIs along with reasonable interest. 

Jagroop Singh Mahal, president of the forum, stated: “It is interesting to note that even if the loan amount was not paid, the bank started recovering instalments. It appears one section of the bank does not have any connection with the other section and even if the loan is not paid to him, the other section starts recovering the amount which is not only deficiency in service on their part but an unfair trade practice to harass the customers. “