9 hours ago
- Business
- New Indian Express
Manappuram Finance ordered to compensate customer over service deficiency
SHIVAMOGGA: The Shivamogga District Consumer Disputes Redressal Commission has ordered Manappuram Finance Ltd. to compensate a Chikkamagaluru resident after finding the company guilty of committing a deficiency in service by seizing a customer's lorry without a legal notice.
Talib Pasha bin Ansar Pasha, a resident of Gaurapura, Ajjampura in Tarikere taluk, had taken a loan of Rs 8.3 lakh from Manappuram Finance Ltd., Shivamogga branch, under a 'loan-cum-hypothecation' agreement for the purchase of a lorry bearing registration number KA-52 B-4032. The agreement included repayment through 52 EMI instalments. At the time of availing the loan, the complainant had also handed over six blank cheques as security.
Later, the vehicle met with an accident and was seized by the police. On February 20, 2024, Pasha retrieved the lorry from police custody and sent it for repairs. However, he alleged that the finance company repossessed the lorry through its agents without serving any prior notice or obtaining a court order, violating the terms of the hypothecation agreement.
Pasha had submitted a written request to the Regional Transport Officer (RTO) in Tarikere not to transfer the vehicle's ownership to anyone else. Despite this, the finance company allegedly took possession of the vehicle and rented it out to one Mujir Pasha of Venus Automobiles, Hassan.
