SCDRC asks J&K Bank to hold inquiry in alleged forgery
By sourav kalyan On 9 Mar, 2018 At 01:16 PM | Categorized As Business | With 0 Comments

Jammu and Kashmir State Consumer Disputes Redressal Commission (SCDRC) has asked Jammu and Kashmir Bank chairman to hold an inquiry within three months into Rs 42 lakh alleged fraud and forgery.

A bench of the commission comprising its President Justice (retd) Sunil Hali and member DK Kapoor also ordered the bank to transfer Rs 42.7 lakh to a Srinagar businessman’s account.

The commission also awarded Rs 15 lakh compensation to the complainant for “suffering tremendous mental agony and loss of business. It asked the bank to pay 12 percent interest per annum from the date of filing of the complaint.

The commission held that “it is a case of unique nature where with open eyes the bank officials have committed the fraud and forgery which is a case of gross deficiency of service unmindful of the consequences”.

“Not only this, they have harassed the complainant by initiating recovery proceedings against him being fully aware that default in the cash credit account was on account of the illegal act committed by the bank,” it said. “We are surprised that the bank authorities have not taken any action against the defaulting officers even though more than five years have elapsed.”

“It is directed that the chairman of the bank shall appoint an inquiry headed by a general manager, who shall identify the officials, who indulged in the sham and fraudulent transactions and proceed against them,” the Commission said.

“The inquiry be initiated within a period of three months from the date copy of this order is served on the chairman of the bank. In case the needful is not done within the said period, we direct that a FIR be lodged by the bank against the erring bank officials who have committed this fraud,” the commission added.

A businessman through his counsel Altaf Haqani had approached the commission alleging that there were unauthorized transaction to the tune of Rs 42,69,763 from his account.

The bank however said that the amount was transferred into the loan account of his brother, who had a running loan account with the bank at Branch Unit, Bhogal, and Delhi as he stood as a guarantor.  “This argument per-se cannot sustain,” the Commission said.

“Even if the complainant had stood as a guarantor, that by in itself did not authorize the bank to recover this amount from him unless other security was furnished by the defaulter  and the bank has allowed transaction on forged documents”. The Commission, however, left it open for the bank to recover the money from the account of businessman’s brother.

About -

Leave a comment

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

AllAccessDisabledAll access to this object has been disabledE2EDB38019A65E95V3PvJzN6WMzYceq4wG6GIIFsAYnMZY/N1e86biAHB77De5oPcBHg587BbmlOQLq1DKUr9iald5w=