SBI loses title deeds, Bombay High Court says pay Rs 5,000 per day from December 2023

The State Bank of India (SBI) recently admitted to losing the original title documents of two properties that were deposited as security for a loan by a partnership firm named In Vogue Creations. The Bombay High Court has now ordered the bank to pay the firm Rs 5,000 per day starting from December 1, 2023, until the bank provides certified copies and reconstructed title records of the properties.

The loan was fully repaid in 2003, but the documents have been missing since then. The court ruled that the bank had a responsibility to preserve and return the valuable original documents after the loan was repaid. The bank had already deposited Rs 1 lakh in the firm's account following proceedings under the banking ombudsman, which will be deducted from the total compensation payable.