The Bombay High Court recently directed Bank of Baroda (BoB) to refund Rs 18.79 lakh to the account of a 75-year-old Mumbai woman and her daughter-in-law, who were victims of cyber fraud involving unauthorised Internet banking transactions.
The amount was allegedly withdrawn in December 2021 after the senior citizen’s SIM card was cloned or swapped, leaving her unaware of the transactions until the funds disappeared. The court found that the petitioners represented by advocate Aneesa Cheema were not negligent.
A bench of Justices Bharati H Dangre and Manjusha A Deshpande, in an April 20 ruling, noted a “similar modus operandi” as in an earlier case, where SIM swapping had disabled SMS alerts and “the transaction never received authentication by the account holder.”
In that case, the high court on April 6 directed HDFC Bank to refund Rs. 38.04 lakh to the account of a freelancer in business consultancy from Pune.
Granting relief in the present case, the court held that the account holders were “in no way negligent” and that the bank had failed to show any sharing of OTPs with someone else. It further noted that the petitioners were protected under the Reserve Bank of India’s July 2017 “zero liability” provision, which mandates the prompt reversal of unauthorised electronic transactions within 10 days.
The court noted that the bank had failed to reverse the amount and directed the immediate refund of Rs 18.79 lakh, with 6 per cent interest, within 12 weeks, failing which the sum would attract an additional 6 per cent interest until credited to the petitioners’ savings account.
Advocates Rahul Gaikwad and Komal Singh, appearing for the mobile service provider, said fraudsters, pretending to be the petitioner, had requested the SIM block through hotline number. The provider verified the KYC details before blocking and the theft occurred afterwards. The SIM was later reactivated following the petitioner’s complaint.
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The court noted that the account holders had been operating the joint savings account since the death of the senior woman’s husband in 2019, who deposited dividends and other income, and used cheques and internet banking.
The fraud came to light on December 5, 2021, when the petitioner saw a credit balance of Rs 18.79 lakh, but the next day, most of it was withdrawn. The petitioner lodged an FIR with the Mumbai police as her mobile became inoperative. The transfer happened between 7.25 on December 4 and 7.31 pm on December 5. After she clarified that no SIM theft occurred, it was reactivated at 9.30 pm.
The petitioner came to know that four beneficiaries had been fraudulently added to the account. The bank’s report showed that fraudsters logged in and, on every attempt to add beneficiaries, a One Time Password (OTP) was sent to the mobile number, but the petitioner never received it because her mobile number was inactive.
“The bank was conscious that the OTP sent to the petitioner’s mobile was not delivered, and still the savings bank account was operated using the OTP generated by the bank to add beneficiaries,” the HC observed.
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
