One mistake of the bank and 3.2 crores of rupees became ‘trash’, now the court has taught a lesson!

• Axis Bank made a mistake

• Adal taught by the court

• What exactly is the case

During the 2016 demonetisation By Axis Bank The National Consumer Disputes Redressal Commission (NCDRC) has ordered the bank to return the amount along with 6% interest to a company for non-payment of Rs 3.2 crore (approx. $32 million). Even after expiry By the bank Due to non-deposit of cash in the company’s account, large sums became unusable.

The bank had refused to credit the company’s account saying it was “suspicious” and “high risk”. However, the Commission found that the bank’s decision was purely one-sided. The bank not only violated government regulations but also ignored RBI’s instructions enabling customers to deposit their money in the bank.

1.3 crore in advance

At the time of demonetisation, the bank deposited Rs 1.3 crore (approximately $1.3 million) into the account of Procure Logistics Services Private Limited. However, it later refused to accept the cash amount of Rs 3,19,58,500 citing a suspicious account.

Tesla-Axis Bank Partnership: A special partnership of Tesla-Axis Bank! Buying a Tesla car now easier on EMI

What did the commission say?

In its order, the commission said that even if the bank has any doubts about the company’s cash, the legal course is to deposit the cash and then report it to the authorities concerned. However, the bank’s decision was not based on the decision of the competent authorities; Instead, it is entirely the fault of the bank’s unilateral action. The company was ready to comply with all the rules.

The commission said that the bank should compensate the company a loss of ₹3,19,58,500. During demonetisation, the company had deposited Rs 1.3 crore notes in the bank on various dates. However, it was prevented from depositing more than that, leaving the company with notes of ₹3.2 crore. After the demonetisation deadline, this money became worthless.

The commission admitted the negligence of the bank

J. Rajendra and A.K. Mendiratta’s bench said the loss suffered by the company was “irreparable” and was directly attributable to the bank’s negligence. Even if the bank has any doubts about the company’s deposits, the correct course of action is to bring the notes into the banking channel. The bank should have accepted the amount and then reported it to the appropriate authorities. The company had submitted audited balance sheets and complete accounts of the previous years, yet the bank withheld the cash deposit without any valid basis.

Axis Bank Quarterly Results Strong; Shares rose 4 percent, with the brokerage giving a ‘BUY’ rating