The District Consumer Disputes Redressal Commission, Malappuram bench, headed by Mohandasan K. (President), Mohamed Ismayil CV (Member), and Preethi Sivaraman C (Member), has ruled against ESAF Bank, directing them to reimburse Rs 4,07,053 lost from an account and pay Rs 50,000 as compensation. The commission found the bank negligent in protecting the account holder’s funds and failing to take prompt action to recover the lost amount despite being notified. According to the commission’s ruling, the bank is obligated to demonstrate that the complainant was implicated in the money loss, in accordance with Reserve Bank guidelines.
The decision by the Consumer Commission followed a complaint filed by Elamkulavan Usman of Vettikkatiri, who fell victim to a fraudulent call requesting an OTP for KYC update, purportedly from the bank. Usman complied with the request but realized the call was deceptive upon visiting the bank the next day, discovering the substantial sum missing from his account. Despite Usman’s efforts, the bank authorities did not initiate measures to retrieve the lost funds, leading him to seek recourse with the Consumer Commission.
While the bank contended that Usman’s disclosure of the OTP was the cause of the loss, the commission rejected this argument. Emphasizing the Reserve Bank’s guidelines, the commission reaffirmed the bank’s responsibility to substantiate any alleged involvement of the complainant in the money loss. In addition to the restitution of the lost amount, the commission ordered the payment of Rs 50,000 as compensation and Rs 10,000 for court expenses, with a provision for 9 percent interest in case of delay, to be fulfilled within one month.
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