“After perusal of all the documents, it is established that a fraud has been committed by the official of the bank with the complainant and other account holders. Hence it is the duty of the bank to protect the amount/finances deposited by the customers and villagers with the bank. The bank being the employer is liable for the wrongful act and conduct of its employees,” the June 30 order read.

‘Illegally withdrew amount’

The woman claimed that she and her husband have a joint bank account in SBI and came to know that Rs 4.37 lakh was withdrawn from their account fraudulently on different dates from October 29, 2019 to February 12, 2020. She approached the branch manager, who allegedly told her that one of the bank’s employees had illegally withdrawn the money and assured her that the amount would be credited back to her account. However, no refund was made.

Subsequently, her husband lodged an FIR on March 1, 2020. The woman contended that SBI’s failure to restore the money amounted to deficiency in service and caused her mental agony and harassment. She was represented by advocate Ashwani Phogat.

SBI’s defence

The SBI and the manager concerned appeared and filed their joint written statement pointing out that the woman had no cause of action to file the present complaint against them and it was liable to be dismissed. SBI was represented by advocate O P Chugh, who submitted that as per the record of the bank, the amount was withdrawn by the complainant from her account.

It was added that though the complainant levelled allegations that a certain amount was illegally withdrawn, an investigation is pending in this regard. The counsel submitted that all the other allegations levelled against SBI and the manager were wrong and denied, seeking dismissal of the complaint with costs.

Chugh argued that an inquiry is pending with regard to the alleged fraudulent transactions and further action will be taken according to the report by the higher authorities and as per bank rules and regulations.

‘No relevant evidence from SBI’

The commission found that the bank failed to place on record any independent evidence to establish that the withdrawals were made by the complainant herself or by any person authorised by her. It was further noted that SBI and its manager also failed to produce any expert opinion, handwriting examination report, or forensic science laboratory (FSL) report to authenticate the signatures on the disputed withdrawal slips.

The commission referred to the FIR lodged by the woman’s husband and found which alleges that the fraud had been committed in the bank by its own employee. “The respondent (SBI) itself has admitted in its written statement and affidavit that an inquiry/investigation concerning the alleged fraud and cheating was pending and the action would be taken after the conclusion thereof. Meaning thereby a fraud has been committed in the bank,” it added.

Accordingly, the commission allowed the complaint and directed the SBI and its manager concerned to pay an amount of Rs 4.02 lakh along with interest at the rate of 9 per cent per annum from the respective dates of withdrawal/debit from the complainant’s account.

It further directed the bank and its employee to pay Rs 5,000 as compensation on account of deficiency in service and Rs 5,000 as litigation expenses to the complainant within 30 days.

Significance of ruling

This ruling highlights that banks have a duty to safeguard customers’ deposits and can be held vicariously liable for fraudulent acts committed by their employees.

Consumers facing similar grievances may contact the consumer helpline in their respective states (Haryana: 1800-180-2087) or dial the National Consumer Helpline at 1915 for assistance.