Ahmednagar | July 4 | Correspondent
(Public issue) In a landmark decision delivered by the District Consumer Disputes Redressal Commission here, the Bank of India has been directed to compensate the complainant for financial losses incurred due to online fraud. The commission has ordered the bank to refund the deducted amount of ₹74,938—with interest—to Prakash Sanchalal Jain, a construction businessman, as the deduction was made from his account without his permission or OTP verification.
(Public issue) Between October 15 and 16, 2022, a total of ₹1,56,047 was fraudulently withdrawn from Jain’s account across seven unauthorized transactions. Jain filed complaints with the bank, the Cyber Police Station, and the Banking Ombudsman. The bank refunded ₹72,507, but since the remaining amount was not returned, a formal complaint was filed with the Consumer Commission through Adv. Sunil B. Mundada.
(Public issue) While defending itself, the bank stated that the account was insured and that the insurance company had rejected the claim for the remaining amount. However, the commission upheld the complainant’s arguments and emphasized the bank’s responsibility towards its customers. It directed the bank to implement secure online systems and further ordered it to pay ₹10,000 as compensation for mental distress and ₹7,000 towards litigation costs.
As per the order, the total amount must be paid with interest within 30 days from the date of receiving the order copy.
This decision brings relief to ordinary bank customers, with the commission clearly stating that it is the bank’s duty as part of its service responsibility to protect customers from such fraud. Adv. Sunil B. Mundada (Contact: 9822286712) represented complainant Prakash Jain in the case.
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