Bank told to pay Rs 1 lakh maturity bond amount

Tribune News Service

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Chandigarh, June 11

The District Consumer Disputes Redressal Forum (II) has ordered IDBI Bank to pay maturity amount of bond of Rs 1 lakh along with interest to a Sector 42 resident.

The forum has also asked the bank to pay Rs 10,000 litigation fee to the applicant.

Complainant Surjit Kaur, in her plaint, said she invested Rs 2,700 in Deep Discount Bond (Series-I). After maturity on March 31, 2017, it was holding its face value of Rs 1 lakh payable to the bond holder.

However, the bank issued a public notice on June 4, 2010 in a newspaper for the redemption of the bond scheme by exercise of call option prior to normal maturity dates, which was not in the knowledge of the complainant.

As such, after the period of maturity, when the complainant enquired about the value she would receive against the said bond, she was informed that the bank had already invited a call option to all investors to redeem the bonds. It is stated that at the time of the call option, the redemption amount was Rs 12,000 against the investment of Rs 2,700 for each bond. Now, the present value, including interest, will be around Rs 17,000 for each bond. It was stated that the complainant has not received any communication or notice from the bank in this regard.

In its reply, the bank stated they had the option to encash/redeem the bond at the end of every five years from March 31, 1992. It is further stated that the bank exercised the option of redemption of bonds after 10 years i.e. on March 31, 2002 when the deemed face value of the bond was Rs 12,000.

After hearing the two sides, the forum directed the bank to pay Rs 1 lakh along with interest at 9 per cent per annum from 31.3.2017 till payment, along with litigation cost of Rs 10,000.