Andhra Pradesh

Lokayukta frees man from loan trap

Staff Reporter Vijayawada 27 September 2021 00:51 IST
Updated: 27 September 2021 00:51 IST

It directs action against KHBSL staff for not accounting for sums repaid by complainant

The Lokayukta of Andhra Pradesh has directed the Registrar of Cooperative Societies (RoCS) to identify the employees of Kadiri House Building Society Limited (KHBSL) who did not account for the sums paid by the complainant, K. China Bavaiah, towards the loan he had obtained from the A.P. State Cooperative Housing Societies’ Federation (through KHBSL), and recover the amounts paid from them and credit the same to the complainant’s loan account as on March 31, 2006.

In its proceedings, the Lokayukta ordered that disciplinary action be taken against the said employees. The penal and overdraft interest on the loan should also be waived, it ordered.

It also ordered that the loan account be cleared and the registered documents (property title deed etc.) of the aggrieved person should be returned.

Advertising
Advertising

Besides, the RoCS was instructed to see what action could be taken against the KHBSL for penalising the complainant who had repaid his loan in full.

Mr. Bavaiah said in his complaint that he had applied for ₹75,000 loan in 1996, but received only ₹50,000 after deduction of ₹25,000 as commission by the officer concerned in the AP State Cooperative Housing Societies’ Federation.

Mr. Bavaiah said he had promptly cleared the dues, which included increased interest rate, to prevent auction of his house by selling gold for ₹1,25,000. He said he was shocked on receiving a notice to pay ₹5,25,685 more.

Comments
More In Andhra Pradesh
Read more...