CHENNAI: The Madras High Court has come to the rescue of a poor engineering student by directing the Kurinjipadi branch of the Indian Bank to pay the hostel fees in full.S Sivaprakash joined BE (Electrical and Electronics Engineering) course in SRR Engineering College in Padur near Chennai. As he is the first person aspiring for graduation, the State gave him tuition fee concession and it was fixed at Rs 12,500 per year. The college fixed the hostel fee at Rs 47,500 per year. He applied for loan from the Indian Bank for a total sum of Rs 2,40,000 at the rate of Rs 60,000 per year. However, the bank sanctioned only Rs 1.50 lakh at the rate of Rs 37,500 per year. The bank stated that it could not sanction the exorbitant hostel fee of Rs 47,500 per year. As per its policy decision, it could pay only Rs 25,000 per year towards hostel fee. Justice D Hariparanthaman, before whom the writ petition came up for hearing last week, observed that in the absence of production of any material to substantiate the bank’s claim of policy decision to sanction of Rs 25,000 only as hostel fee, the argument in that connection failed.The appliction issued by the bank made it clear that a student could ask for educational loan as charged by the institution under various heads and if it exceeded Rs 4 lakh, he should provide security for the same. “Hence, the petitioner is entitled to claim the educational loan under various heads and there is no limit on the hostel fee. The bank could not question the rate charged by the college for hostel facility. It is only to see as to whether the amount claimed as loan is a bona fide one. Since the petitioner’s claim is below Rs 4 lakh, the bank is bound to sanction the same without insisting on security,’’ the judge said and directed it to sanction Rs 2,40,000 to the petitioner within two weeks.
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