Shafi Shali (Consultant) 17 November 2014

Bank fraud/severe violation

I am a returned NRI from London .I am an account holder of Vysysa/Ingvysysa since my childhood kiddy bank account/basic account that dates back to 1984 or 1989 and we are also the building owners for the same bank at Holagunda of Kurnool district, Andhra Pradesh. I was away from the country by my profession from 2005 to 2012. My account no.319010004356 and it was connected for my revenue receiving from India and also abroad

When I went for auditing in 2012, to my surprise, I find my account operated and transactions for an approx total amount of INR 24 Lacs are carried on regular basis while I was absent for many transactions, being away in a different country and then the manager refuses to give me the photocopies of the vouchers for the same to get them scrutinized and cross checked for my signature.

I have neither given POA or a Mandate to anybody and it is neither a joint account

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2 Replies

Kumar Doab (FIN) 17 November 2014

Approach a lawyer well versed with such matters and demand everything in writing under proper acknowledgement from BM,MD.. Pursue RTI route thru RBI if BM/Bank/bankers does not revert properly. Of it is IT FRAUD BANK IS RESPONSIBLE AS PER RBI GIDELINES. DCDRF,IT adjudicator of the state can also be approached.

sanjay kumar (BE/ LLM in Corporate Laws) 19 November 2014

Its a bit complicated case since it involves the internal functioning of the Bank. The responsibility of the Bank to you is limited to compensate for any loss you have suffered because of the inefficiency of the Bank. The other thing is that it is the responsibility of the account holder also to keep checking his account on regular intervals and ensure that everything is in proper shape. Any transaction not carried out by the A/c Holder or any debit or credit not attributable to the a/c holder are also to be informed to the Bank by the a/c holder.

Undergoing a detailed investigation from 1984 onwards and auditing the account may not be practical. It may cost you a bomb in CA charges etc and yet you dont get anything out of it except that your account has been trespassed. If that is found, it will go with the internal efficiency of the Bank and the Bank may not be liable to pay you any damages.

The first and foremost thing you should do is ensure that all your transactions-credit as well as debit --have been properly accounted for and you have not suffered any loss. Secondly, you have to make a formal complaint with the regulator-in this case RBI from vigilance angle.

Other than that, you dont have much remedy available, in my humble opinion. However, in case you have suffered a loss for which you have proofs like documents,receipts etc., you can approach a Court of Law for recovery and other compensation.

You may contact other experts also who may have different views.