IDBI bank not returning my original documents after the loan closure

Question

► I availed a home loan from IDBI Bank, Malleshwaram Branch, depositing my original property title deeds as security. I repaid the loan in full on 10-09-2021, but the Bank failed to return my original documents, stating they were destroyed in a fire at SHCIL while in its custody. I was given only certified copies. In May 2026, I attempted to sell my property but could not, as prospective buyers declined solely due to the absence of original title deeds. Though the Bank recreated certain documents and issued supporting letters, these have not restored my original position or compensated my actual loss. The Bank claims the fire was a force majeure event. However, the documents were entrusted to the Bank, and responsibility for their safe custody remained with the Bank regardless of the cause. The loss has severely affected my property's marketability and financing eligibility, since certified copies do not carry the same legal or commercial value as originals, making legal clearance and housing loans difficult for buyers. My quantifiable financial loss: An earlier purchaser agreed to buy the property for ₹80,00,000, but the transaction failed due to non-availability of original documents. The present purchaser initially agreed to ₹79,00,000, but later communicated in writing that due to higher interest burden and financing difficulties from the missing originals, the price was renegotiated down to ₹75,00,000.I incurred brokerage of ₹1,50,000 to secure the present purchaser; the earlier transaction involved no brokerage.The purchaser had no practical option but to take a housing loan from IDBI Bank itself, restricting financing choices.I have thus suffered a direct financial loss of ₹6,50,000, apart from mental agony, delay, and hardship.

Answer 1

Dear Client,

Considering the above facts, it appears that you have a valid claim against the Bank for deficiency of service and negligence. The original title deeds should have been taken care of by the bank, and the bank had an obligation to give it back to me after the loan was cleared. In case the destruction of the said documents in the fire when in the custody of SHCIL cannot absolve the bank from liability simply based on force majeure. In case you can prove that the loss of the original title deeds caused the decrease in the selling price of the property, additional brokerage charges, among other losses, you are entitled to compensation for the actual loss, mental suffering, and legal fees incurred before the Consumer Commission or any other relevant authority. Please make sure to keep all supporting documents such as the loan closure, letter from the bank regarding loss of documents, written notice from the purchaser about the decreased selling price, and proof of brokerage paid.

I hope this helps and if you have any further issues do not hesitate to contact us.

Answer 2

Dear Client,

I understand your concern. After having a closer look at your legal query, I suggest that you file a consumer complaint for deficiency in services and negligence and claim compensation in the Consumer Court.

For further legal assistance, you can always contact us

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IDBI bank not returning my original documents after the loan closure

2 Answers