The Delhi State Consumer Disputes Redressal Commission has upheld a significant ruling, ordering the State Bank of India (SBI) to pay a customer ₹1.30 lakh. This directive comes after the bank failed to preserve and produce crucial evidence, including CCTV footage, related to ₹80,000 drained from the customer's account through unauthorized transactions in 2018.
The commission dismissed SBI’s appeal against an August 2023 district consumer commission order, reinforcing the bank's accountability for 'deficiency in service'.
Unauthorized Withdrawals Discovered
The aggrieved customer, a government-school lab assistant, had maintained an SBI account since 2002, where his salary was credited. On October 10, 2018, he made a legitimate withdrawal of ₹5,000. However, just twelve days later, on October 22, he discovered his account had insufficient funds when attempting another withdrawal.
Upon updating his passbook, he found that four unauthorized ATM withdrawals of ₹20,000 each, totaling ₹80,000, had occurred on October 12. Additionally, two fund transfers of ₹40,000 and ₹10,000 were made to an account belonging to an individual named 'Sonu', all without his knowledge or consent.
Customer's Prompt Action and Bank's Inaction
Immediately after discovering the fraud on October 22, 2018, the customer filed a written complaint with SBI, requesting recovery of the lost funds and verification of the disputed transactions. He also lodged an FIR at the Mayur Vihar Phase-I police station on the same day. Despite a follow-up letter to SBI in March 2019, the customer reported receiving no satisfactory response or meaningful investigation from the bank, prompting him to approach the consumer commission.
Commission Cites SBI's Failure to Provide Evidence
The State Commission bench, comprising Justice Sangita Dhingra Sehgal and member Bimla Kumari, highlighted that the customer had promptly informed the bank and specifically requested CCTV footage. The bench observed, “However, despite the complaint having been lodged within a reasonable time, the Appellant neither secured nor produced the CCTV footage before the District Commission or before this Commission.”
The commission further noted that SBI, as the custodian of electronic transaction logs, ATM journals, switch records, and authentication details, was in the best position to establish the legitimacy of the transactions. The absence of such material was a critical factor in their decision. The customer consistently maintained that his debit card was never lost or handed over to anyone, suggesting possibilities like card cloning, skimming, ATM compromise, or technical issues, which the bank failed to investigate.
SBI Ordered to Compensate Victim
The commission upheld the original order, directing SBI to pay the customer ₹1.30 lakh, along with 6% annual interest calculated from October 12, 2018. In addition, the bank was ordered to pay ₹5,000 for mental agony suffered by the customer and another ₹5,000 towards litigation costs. The ruling underscores the responsibility of banks to safeguard customer funds and provide necessary evidence in cases of alleged fraud.