SBI Loses Original Property Documents; Now Faces Daily Fine of ₹5,000

The country's largest public sector bank, SBI, has been ordered by the court to pay a penalty of ₹5,000 per day. The court imposed this fine because SBI lost the original documents for two properties.

SBI News: The State Bank of India (SBI), the country's largest public sector bank, is currently facing trouble. Losing the original documents for two properties has proven costly for the bank. In this matter, the Bombay High Court has directed the bank to pay ₹5,000 daily to a partnership firm, effective from December 1, 2023. This payment must continue until the bank provides certified copies and reconstructed title records.

Documents Deposited in 1979

The case involves a partnership firm named 'In Vogue Creations'. The firm had deposited the original documents of two of its properties with SBI as security while availing a loan in 1979. Although the firm repaid the entire loan amount in 2003, the documents were not returned. Even when the firm requested the documents, they were not provided. During the hearing, SBI admitted that it did not possess the original documents for either property. The firm subsequently sought compensation from the bank.

Court Rejects Bank's Argument

SBI argued in court that the firm had not contacted them to reclaim the documents immediately after repaying the loan. The bank cited this delay as grounds to absolve itself of liability. However, the High Court did not accept this argument.

The court stated that the bank's responsibility does not end simply because the loan has been repaid. These documents are crucial; therefore, it is the bank's obligation to safeguard them and return them to the owner once the loan is settled.

Daily Fine of ₹5,000

A bench comprising Chief Justice Ravindra V. Ghuge and Justice Gautam A. Ankhad issued this order on September 2. The court clarified that the bank could not be absolved of its responsibility merely because the firm had delayed in requesting the documents.