Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » India
1-min read

Deposit Rs 10 Crore in Consumer Commission for Fraud by Manager, SC Tells ICICI Bank

The Mumbai District Central Co-operative Bank had invested the money with ICICI in fixed deposits and this money was purportedly embezzled by the branch manager of the private sector bank using forged documents.

Utkarsh Anand | CNN-News18

Updated:October 8, 2018, 3:59 PM IST
facebookTwitterskypewhatsapp
Deposit Rs 10 Crore in Consumer Commission for Fraud by Manager, SC Tells ICICI Bank
(Image: Network18 Creatives)

New Delhi: The Supreme Court has directed ICICI Bank to deposit Rs 10 crore in the National Consumer Commission, which had directed ICICI to refund the money to a cooperative bank for fraud committed by its manager.

A bench headed by Justice Madan B Lokur declined to stay the consumer commission's order unless the bank deposits the money first. The court further made it clear that it is only on the condition of the bank depositing Rs 10 crore that adverse steps against ICICI would not be taken.

"An amount of Rs 10 crore should be deposited by the petitioner — ICICI Bank Limited — before the National Consumer Disputes Redressal Commission within two weeks. Subject to deposit of Rs 10 crore, no coercive steps be taken," stated the court in a recent order.

ICICI had appealed against the commission's order in March whereby the bank was held guilty of deficiency in services. The bank was directed to refund the Mumbai District Central Co-operative (MDCC) Bank with interest a sum of Rs 10 crore.

The cooperative bank had invested the money with ICICI in fixed deposits and this money was purportedly embezzled by the branch manager of the private sector bank using forged documents.

ICICI had opposed the complaint by the MDCC contending that the complainant was not a consumer under the Consumer Protection Act as the investments made by MDCC Bank are in accordance with its bylaws for making profit amounts to commercial purpose.

But the apex consumer commission shot down this argument, saying the main objectives of MDCC Bank were to supervise and assist co-operative banks and as the term deposit was incidental to it, it could not be termed as commercial transaction.

It also held that ICICI Bank was “vicariously liable for the acts of misconduct committed by its employees and the siphoning of the funds of the complainant constitutes gross deficiency in service rendered to the complainant”.

Subsequently, on September 5, the commission noted that although the top court has issued a notice on the ICICI's appeal, there was no stay on its order. "The OP is directed to comply with the order passed by this commission within four weeks from today unless the order of this commission is stayed in the meanwhile by the Hon’ble Supreme Court,” ordered the commission, compelling ICICI to rush to the Court again to ward off coercive steps.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results