The Economic Times

SBI loses original papers for property loan; court orders bank to pay Rs 5,000 per day penalty

The Bombay High Court ordered State Bank of India to pay daily compensation. This order came after the bank admitted losing original property documents deposited over two decades ago. The court rejected the bank's argument about the borrower's delay in requesting their return. Compensation will be paid daily until the bank reconstructs the missing title records. This ruling emphasizes a bank's responsibility for preserving and returning borrower property documents.