In the digital maze of clicks and codes, even a single misstep can turn a trusted card into a portal for unseen thieves.
Delhi High Court Protects Consumer in Rs 76,777 Credit Card Fraud Case
On November 27, 2025, the Delhi High Court granted relief to Mr. Sarwar Raza after his credit card was misused for fraudulent transactions on platforms including Paytm and Flipkart, totalling Rs 76,777. Despite notifying the bank, he received a demand noticeand a collection agent visited his home.
He had approached the Reserve Bank of India (RBI) Banking Ombudsman twice, but both complaints were rejected—firstly, because it was filed through an advocate, and secondly, because of a procedural error. Post this knowledge, the court noted that such rejections expose flaws in the RBI-Integrated Ombudsman Scheme, 2021 and then emphasized on the need for a consumer-friendly grievance redressal mechanism.
The bank was directed by the Delhi High Court to refund the full amount, restore Mr. Raza’s CIBIL score, and pay Rs 1 lakh for harassment. Directions to improve the complaint handling, including supervised review of rejected complaints were also issued to RBI.
RBI Ombudsman Overhaul – Lessons from Mr. Raza’s Credit Card Fraud
All of this started with a series of events that date back to April 2022. A Delhi-based advocate, Mr. Raza, had a credit card (No.1) issued by Citibank. After multiple failed login attempts, the card was disabled on April 6, and a new card (No.2) was issued without his request. Fraudsters allegedly changed his registered mobile number, leaving him unaware of the transactions. On April 12, he discovered a debit of Rs 76,777 for a Paytm rent payment.
When this happened, he approached the bank and Delhi Police Cyber cell and filed complaints. Initially, the amount was provisionally credited by the bank but was later reversed, citing the use of APIN/IPIN/OTP credentials. This agitated Mr Raza more and then he approached the RBI Ombudsman, which rejected both complaints for technical reasons.
Furthermore, the High Court of Delhi criticized the bank’s recovery agents for harassment, stating that such conduct is “condemnable.”
The bench highlighted that even if an OTP or password is inadvertently shared, banks must provide immediate mechanisms to block cards and resolve disputes before charging interest or penalties.
Legal experts noted the judgment reinforces the principle that consumers facing unauthorized electronic transactions cannot be burdened with penalties, and grievance mechanisms must be truly effective, not merely procedural. The court’s directions also include requiring banks to clearly communicate complaint hierarchies and provide flowcharts on their websites to ensure transparency and accessibility.
The ruling underscores the need for stronger consumer protection and institutional accountability in cases of digital fraud, with courts and regulators expected to prioritize effective resolution over mechanical processes.
May the lessons from Mr. Raza’s ordeal light the path for all, so no other consumer ever wanders lost in the shadows of digital deceit.
Summary
In November 2025, Delhi High Court ruled in favor of Mr. Sarwar Raza after his credit card was fraudulently used for Rs 76,777. Despite notifying the bank and RBI Ombudsman, he faced harassment and rejected complaints. The court ordered a full refund, CIBIL restoration, Rs 1 lakh compensation, and directed RBI to strengthen grievance redressal, emphasizing consumer protection and accountability in digital fraud cases.
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