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Business
Jabalpur Court Orders Bank to Refund Rs 1.57 Lakh for Unreleased Loan EMIs
✍️ Amar Ujala · Jabalpur
🗓 01 Nov 2026, 04:36 PM
👁 2
The Jabalpur District Consumer Disputes Redressal Commission has ordered the Central Bank of India to refund Rs 1,57,059 with interest after deducting EMIs for a loan that was never disbursed.
The Jabalpur District Consumer Disputes Redressal Commission has issued a significant order against the Central Bank of India regarding irregular loan practices. The commission directed the bank to refund a total sum of Rs 1,57,059 to a consumer who had six EMIs deducted from their account despite the loan amount never being disbursed.
The ruling includes an additional 7 percent interest on the refunded amount. The commission found that the bank failed to release the sanctioned loan funds but continued to debit the customer's account for monthly installments, causing financial loss to the complainant.
In addition to the principal refund and interest, the bank has been ordered to pay compensation of Rs 18,000. The institution is also required to cover the litigation expenses associated with the case. This decision underscores the importance of banks verifying loan disbursement before initiating EMI deductions.
The ruling includes an additional 7 percent interest on the refunded amount. The commission found that the bank failed to release the sanctioned loan funds but continued to debit the customer's account for monthly installments, causing financial loss to the complainant.
In addition to the principal refund and interest, the bank has been ordered to pay compensation of Rs 18,000. The institution is also required to cover the litigation expenses associated with the case. This decision underscores the importance of banks verifying loan disbursement before initiating EMI deductions.