LI Network
Published on: January 15, 2024 at 00:20 IST
In a recent legal judgment from the District Consumer Disputes Redressal Commission-I (North District), Indian Bank has been directed to compensate Mr. Harish Chander, a resident of Burari, Delhi, for unauthorized electronic banking transactions amounting to Rs. 10,00,000 from his salary account.
The complaint, filed under Section 35 of the Consumer Protection Act, 2019, exposes the alleged collaboration between Indian Bank and Jio in the fraudulent activities.
On October 25, 2021, Mr. Chander discovered the unauthorized transactions and promptly reported the incident to Indian Bank and the local police. The transactions, involving a transfer of Rs. 10,00,000 to an unknown ICICI Bank account, were traced back to a suspicious email from Indian Bank concerning the generation of Mr. Chander’s NET Banking transaction password.
The Commission, led by President Divya Jyoti Jaipuriar and Members Ashwani Kumar Mehta and Harpreet Kaur Charya, observed Mr. Chander’s claim that Indian Bank failed to take appropriate action despite being informed promptly. Although the bank froze Mr. Chander’s ATM card, it did not reverse the fraudulent transactions.
Quoting the Reserve Bank of India’s instructions, the Commission stressed that the onus of proving customer liability in unauthorized electronic transactions rests with the bank. Member Ashwani Kumar Mehta stated, “The OP has not taken any action to assess the liability of the complainant/consumer in unauthorized electronic banking transactions, proving that the complainant has suffered directly due to deficient service of the OP-1.”
In response to these findings, Indian Bank has been mandated to pay Rs. 10,00,000 within 30 days, along with interest at 9% per annum from the date of the fraudulent transaction. Additionally, a compensation amount of Rs. 1,00,000 has been stipulated for the mental pain, agony, and harassment suffered by Mr. Chander.
The Commission clarified, “If the above said amount is not paid by the OP to the Complainant within the period as directed above, the OP shall be liable to pay interest @12% per annum from the date of expiry of the 30 days period.”
Case Name: HARISH CHANDER Vs INDIAN BANK
