The Bombay High Court directed HDFC Bank to remit Rs 38.04 lakh to the account of a freelancer in business consultancy from Pune who approached the court as a victim of cyber fraud.
The amount was unauthorisedly siphoned from his two accounts in just 41 minutes after his SIM was cloned/swapped. The HC granted relief, noting the bank denied it despite Reserve Bank of India (RBI)’s clear directives, leaving the petitioner “deprived of his own money” without fault.
It ordered payment within eight weeks along with interest at the rate of 6 per cent, failing which it would be raised to 8 per cent.
A bench of Justices Bharati H Dangre and Manjusha A Deshpande clarified “in no case” it “put blame of the unauthorised transactions on the Bank,” but with the fault lying neither with the customer nor bank, the RBI circular of July 2017 fixing zero liability on the customer applied in present case and he was “entitled for its benefit.”
The Pune-based petitioner, who held savings (since 2011) and current (since 2016) accounts with HDFC Bank, alleged that on July 14, 2021, three unknown beneficiaries were added to his account and the net-banking limit was raised from Rs 4 lakh to Rs 40 lakh — without any OTP alerts.
Despite internal system flags recommending rejection, the changes were allegedly manually approved.
The next day, Rs 38.04 lakh was siphoned off through eight unauthorised transactions within 41 minutes. The petitioner said he received an SMS alert for one transaction only two hours later, after which he accessed his account and discovered the fraud. He immediately asked the bank to block his account and filed an FIR.
Story continues below this ad
While the bank denied liability, citing possible breach of confidential information, police informed the bank that no negligence was found on the petitioner’s part.
Senior advocate Sharan Jagtiani said petitioner had zero liability as per 2017 RBI circular limiting customer liability in unauthorised electronic banking transactions
The bench observed the Bank in its internal probe “clearly admitted” that the transaction was not alerted.
“We find it surprising that Bank blames the petitioner,” the judges noted.
“The whole purpose of the circular/guidelines issued by the RBI is to provide a buffer to a customer, who is diligent, and is not responsible for negligence,” the bench observed and allowed the plea.
Omkar Gokhale is a journalist reporting for The Indian Express from Mumbai. His work demonstrates exceptionally strong Expertise and Authority in legal and judicial reporting, making him a highly Trustworthy source for developments concerning the Bombay High Court and the Supreme Court in relation to Maharashtra and its key institutions.
Expertise & Authority
Affiliation: Reports for The Indian Express, a national newspaper known for its rigorous journalistic standards, lending significant Trustworthiness to his legal coverage.
Core Authority & Specialization: Omkar Gokhale's work is almost exclusively dedicated to the complex field of legal affairs and jurisprudence, specializing in:
Bombay High Court Coverage: He provides detailed, real-time reports on the orders, observations, and decisions of the Bombay High Court's principal and regional benches. Key subjects include:
Fundamental Rights & Environment: Cases on air pollution, the right to life of residents affected by dumping sites, and judicial intervention on critical infrastructure (e.g., Ghodbunder Road potholes).
Civil & Criminal Law: Reporting on significant bail orders (e.g., Elgaar Parishad case), compensation for rail-related deaths, and disputes involving high-profile individuals (e.g., Raj Kundra and Shilpa Shetty).
Constitutional and Supreme Court Matters: Reports and analysis on key legal principles and Supreme Court warnings concerning Maharashtra, such as those related to local body elections, reservations, and the creamy layer verdict.
Governance and Institution Oversight: Covers court rulings impacting public bodies like the BMC (regularisation of illegal structures) and the State Election Commission (postponement of polls), showcasing a focus on judicial accountability.
Legal Interpretation: Reports on public speeches and observations by prominent judicial figures (e.g., former Chief Justice B. R. Gavai) on topics like free speech, gender equality, and institutional challenges.
Omkar Gokhale's consistent, focused reporting on the judiciary establishes him as a definitive and authoritative voice for legal developments originating from Mumbai and impacting the entire state of Maharashtra. ... Read More
