Loan SBI, Shinde Palshe Branch, Nashik has mischievously forced a Insurance loan upon me to insure a house loan.

S

sumantkadam9797

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Bank Name
State Bank of India Shinde Palshe Branch, Nashik, Maharastra
Customer Care Number
(+91)8788825255
Loss Amount
117000
Ratings
1.00 star(s)
Opposite Party Address
State Bank Of India, Shinde Palshe Branch. Nashik. gat No 82. Pune Highway. Chakrapani. Shinde palshe Taluka. Maharashtra -422102
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, NASHIK

Consumer Complaint No. ________ of 2026

IN THE MATTER OF:

[Sumant Babasaheb Kadam]
Colonel (Retd.), Indian Army
Residing at: [Pune]
Contact No: [9689248235]
Email: [sumantkadam9797@gmail.com]
... COMPLAINANT

VERSUS

  1. The Branch Manager
    State Bank of India, Shinde Palshe Branch,
    Nashik, Maharashtra
  2. Mr. Yogesh Sonje
    Representative / Employee,
    State Bank of India, Shinde Palshe Branch,
    Nashik, Maharashtra (Mobile: 9767871937)
  3. State Bank of India
    Through its Chairman/Authorized Representative,
    Corporate Office, State Bank Bhavan,
    Madame Cama Road, Mumbai - 400021
    ... OPPOSITE PARTIES
​

COMPLAINT UNDER SECTION 35 OF THE CONSUMER PROTECTION ACT, 2019 FOR MIS-SELLING, UNFAIR TRADE PRACTICES, AND DEFICIENCY OF SERVICE

MOST RESPECTFULLY SHOWETH:

1. PARTICULARS OF THE PARTIES:

  • The Complainant is a retired Colonel of the Indian Army, residing at the address mentioned above. The Complainant is a "Consumer" under Section 2(7) of the Consumer Protection Act, 2019.
  • The Opposite Parties (OPs) are the branch, concerned official, and corporate entity of the State Bank of India (SBI), providing banking and financial services to the public.
2. BACKGROUND OF THE CASE:

  • Upon retirement, the Complainant applied for the transfer of his existing Home Loan from the Army Group Insurance (AGI) to the State Bank of India, Shinde Palshe Branch, Nashik.
  • The said Home Loan was successfully transferred and registered under SBI Home Loan Account No. 42478360637.
3. FACTS OF THE GRIEVANCE (MIS-SELLING AND COERCION):

  • During the transfer and documentation process, Opposite Party No. 2 (Mr. Yogesh Sonje) assisted the Complainant.
  • OP No. 2 explicitly informed and convinced the Complainant that the home loan would not be sanctioned unless he signed certain mandatory insurance documents. OP No. 2 represented that the monthly premium for the insurance was an integrated facility provided by SBI to secure the home loan, and it was a mandatory prerequisite.
  • Relying in good faith on the representations made by OP No. 2 in his official capacity, the Complainant signed the documents presented to him.
4. UNAUTHORIZED LOAN DISBURSEMENT AND EXPLOITATION:

  • Contrary to what was represented, the OPs did not integrate the insurance into the primary home loan. Instead, without the Complainant's informed consent or explicit request, the OPs sanctioned an additional, separate Insurance Loan to fund a "Rinn Raksha" policy.
  • This unauthorized transaction resulted in:
    • Insurance Loan Account No.: 42478963919
    • Master Policy No.: 70000018311 (Member ID: 741587660, UIN No.: 111N078V03)
  • The OPs initiated an unauthorized ECS deduction of INR 1,130 per month from the Complainant’s SBI Savings Account No. 20049102826 to service this secondary insurance loan.
  • The Complainant was kept in the dark and was not provided with any physical copy of the insurance policy terms or documents, thereby preventing him from exercising his right to the "free-look" cancellation period.
5. CLOSURE OF HOME LOAN AND CONTINUED HARASSMENT:

  • The Complainant religiously paid the monthly EMIs for two years. Subsequently, the Complainant pre-closed the primary Home Loan (Account No. 42478360637) by paying a lump-sum amount.
  • Despite the complete closure and termination of the underlying asset security (the Home Loan), the OPs continued to demand outstanding payments and interest against the secondary Insurance Loan (Account No. 42478963919) for an insurance policy that was no longer required or logically valid.
  • The Rinn Raksha Policy is surrendered.
  • However, the OPs have failed to refund the full interest, administrative charges, and the emotional/financial toll levied on the Complainant through this forced secondary loan product.
6. GROUNDS OF COMPLAINT:

  • Unfair Trade Practice: Tying the sanction of a home loan to the mandatory purchase of an insurance policy violates Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority of India (IRDAI) guidelines.
  • Misrepresentation and Coercion: OP No. 2 actively misled a veteran Army Officer by stating that the loan would be rejected without the insurance sign-off, violating ethical banking codes.
  • Deficiency of Service: Sanctioning an entirely separate loan account (Insurance Loan) without explicit disclosure and failing to provide policy documents constitutes a severe deficiency of service.
7. PRAYER:

In the light of the facts and circumstances mentioned above, it is most respectfully prayed that this Hon’ble Commission may be pleased to direct the Opposite Parties to:

  1. Close the loan account No. 42478963919 and provide NOC.
  2. Pay complete compensation of the EMIs/interest deducted under the Insurance Loan Account (No. 42478963919).
  3. Pay a sum as compensation for the mental agony, harassment, and loss of peace of mind caused to a retired senior defense personnel as deemed fit by the court.
  4. Pass any other order(s) as this Hon'ble Commission may deem fit in the interest of justice.
Place: Pune

Date: [01 Sept 2026]

COMPLAINANT
[Sumant Babasaheb Kadam]
 

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