Page 20 - Banking Finance February 2021

LEGAL UPDATE

Later a probe was carried out that Jose lodged a complaint with the liable to pay interest enhanced by
showed 10 candidates obtained jobs Burbank Ploice Station in Los Angeles another 3 per cent, which would be 15
on the basis of fake certificates, and on December 24, 2008. Subsequently, per cent.
their appointments were terminated, on March 4, 2009, the bank sent her The bank challenged the order before
but President's Estate refused to charge-slips for 27 of the 29
furnish the details sought in the RTI. transactions. The bank's covering letter the Chandigarh state commission, but
stated that "transaction monitoring is its appeal was dismissed. It then filed
During the hearing of Har Kishan's a revision petition.
appeal against the CIC order, the HC done in batch mode, hence
found that his daughter had also transactions were alerted only on day The National Commission observed
applied for appointment, which he one". Jose alleged that the bank was that a complaint can be filed by a
aware of the fraudulent transactons
didn't mention. He also hid the fact power of attorney holder. It also noted
but had failed to take action. The bank
that he had himself worked at ignored her representations. So, she that the forex card was in Jose's
President's Estate on an adhoc basis. possession and was still in her custody,
filed a complaint before the banking
"The seeking of the above information, ombudsman, and during its pendency yet the disputed transactions had
especially after the petitioner's also approached the District Consumer taken place. It trashed the bank's
daughter did not obtain employment, Forum seeking reversal of the allegation that the card could have
clearly points to some ulterior transactions amounting to Rs. been stolen and used.
motives," the court observed. 4,18,000 together with 12 per cent The National Commission agreed with
interest. Jeena Jose that it could be due to
National Commission: The bank argued that the complaint forgery, hacking, technical glitch or
Bank liable for fraudulent filed by Jeena Jose's father on the security lapse, which would allow the
strength of a power of attorney transaction to occur at some remote
card transactions executed in his favour would not be destination while the card was still in
Jeena Jose had taken a prepaid forex tenable. It alleged that Jeena Jose had Jose's possession.
plus debit card from HDFC Bank on not opted for SMS alerts, so the The National Commission noted that
August 11, 2007, which had a limit of transactions were not intimated at the circular DBR No Leg BC.78/09.07.005/
US $10,000. Sometime in the time they were carried out. The bank 2017-18 dated July 6, 2017, issued by
afternoon of December 19, 2008, blamed Jeena Jose for not keeping her
Jose's father received a call from one card safely. the Reserve Bank of India to
K. Pradeepa claiming to be from the Overruling all the objections, the forum commercial banks said: 'A customer's
credit cards division of HDFC Bank at held the bank liable to pay the entitlement to zero liability shall arise
Chennai. equivalent of $6,110 converted into where the unauthorised transaction
occurs due to contributory fraud,
She sought confirmation regarding a US Indian rupees, along with 12 per cent negligence, or deficiency on the part
$310 transaction attempted on the interest from December 16, 2009 of the bank.'
forex card. After ascertaining with onwards. Additionally, Rs 40,000 was
Jeena, her father informed the official awarded for mental tension and Rs By its order of December 21, 2020,
that no such transaction had been 5,000 towards litigation costs. A 45-day delivered by C Viswanath, the National
carried out. Further transactions to the period was given for compliance. Delay Commission upheld the order holding the
tune of US $6,000 were carried out. in payment would render the bank bank liable to make good the loss. T
Konoklata Mahila Urban Co-op Bank founder bags Padma Award
Laxmin Baruah, has bagged the Padma Sri Award announced on the eve of 72nd Republic Day of India. She is credited
with setting up Konoklata Mahila Urban Cooperative Bank which helped hundreds of women in the districts of Jorhat,
Sivasagar and Golaghat of Assam. Barua had a difficult childhood filled with hardship but this only steeled her will to
do something for the helpless women of the society. Barua was given Padma Shri in recognition of her efforts to
financially empower the Assamese women, media reports say. This year, there are seven Padma Vibhushan winners,
10 Padma Bhushan winners, and 102 Padma Shri awardees.

20 | 2021 | FEBRUARY | BANKING FINANCE