Bank Of India — Grievance for Unjustified levy of 1% penal interest charge by a Nationalised bank (Bank of India BOI) in Home loan

Address:

Gurgaon, Haryana, 122106

I had taken a home loan from Bank of India in Nov’13.

The loan was for a under construction Flat booked in project at Gurgaon.

Bank of India has recently levied on me a penalty of Rs. 87, 000 stating that since your unit has not got registered within a period of 3 years from date of loan, you are required to pay an extra 1% penal interest on the loan amount right from the date of 1st disbursement of loan.

Sir, I simply fail to understand, how am I responsible for any delay in construction and registration of this unit and how can any such penalty be levied on me? With this, I am getting sandwiched between the builder and the bank. Builder has delayed the project because of which I am already suffering by living on rent and also paying housing loan interest to bank. And on other side, bank is levying penalty on me whereas I am nowhere responsible for this delay. Bank had sanctioned this loan by exhibiting trust on this builder and approved the project for financing. If at all they wish to levy any penalty, they must penalize the builder and their own staff for not doing proper scrutiny of the builder before sanctioning of the loan.

Infact, When I ask builder about the reasons for delay, they say that this is due to reasons beyond their control. According to builder, the relevant development authorities could not provide the road connectivities, electricity and water supply connections etc because of which the project got delayed.

In this way, I am getting harassed and sandwiched from both sides.

It is requested to kindly look into the matter and instruct Bank of India not only to remove this undue penalty levied on me but also change their unjustified Home loan rules for levy of this penalty. (After enquiring I got to know that only Bank of India is levying this penalty and no other bank has such rule. Other banks have a rule to levy penalty on housing loans taken for construction of house on a plot wherein it is justified since an individual is solely responsible for construction and registration of the independent house on a plot)

Looking forward for your support in this matter not only to help me but also to help numerous people suffering because of this rule of Bank of India.