Order No. 9 dt. 22/05/2017
The fact of the case in brief is that the complainant is a British National and presently resides at Bali Indonesia and the complainant represented his case through his constituted Attorney Sri Amit Kumar Chakrabarty, 11, Decres Lane, Kolkata-700069.
Complainant opened an account with the London Branch of State Bank of India about 20 years back. At the time of opening of account the Bank Authorities at London had informed the complainant that the British Pound currency which he would deposit at the London Branch would be sent to India and the same would be converted into Indian Currency i.e. rupees and the complainant’s returns in interest would be tax free. Being assured of such benefits the complainant had opened an NRE account in the London Branch of the Bank. The process of transfer of pounds to India was made and the complainant received tax free interest on his investment. The said arrangement was favourable for the complainant since the complainant used to travel to India very frequently for his philanthropic pursuits.
Complainant had made Term Deposits being TDR No.692773 dated 27.01.2000 for an accumulated amount of Rs.32,50,000/- and resulting interest accruing from such Term Deposit were being regularly deposited in the NRE account. In the month of January, 2015 vide an email dated 14.01.2015 o.p.2 informed the complainant that he would not be able to operate the existing account any further since he was a non-Indian National. On the same day the complainant visited the office of o.p.2 and o.p.2 asked him to put his signature in a request form to stop his Term Deposits in the NRE account and transfer all his money into the NRE savings account. The o.p.2 did not explain the consequential regulatory impact to the complainant for the change of account. Being in good faith the complainant changed his account from NRE account to NRE savings account. His new account no. was NRE-SB-11143883763. Immediately it came to the complainant’s notice that the Bank had deducted current financial interest of about Rs.1.2 lakh. Thus the complainant hereby suffered the huge financial loss for no fault of his own. Complainant stated that he was not informed about the technical defects that he would have to deal with the said change in the nature of account. After the said change of nature of account he does not have any current written statement of his TD(NRE) account. The deduction of said amount of Rs.1.2 lakh has not been provided in his current statement. Complainant visited the office of o.p.2 for refund of his deducted amount but in vain. Complainant made a representation dated 21.01.2015 before the o.p.2 but the complainant’s grievance had not been solved. Hence the application praying for refund of Rs.1.2 lakh which was deducted by State Bank of India along with compensation of Rs.1,00,000/- with interest for unfair trade practice and deficiency in service on the part of o.p.2 and cost of Rs.25,000/-.
O.P. appeared before this Forum and contested the case by filing w/v. In their w/v o.ps challenged the maintainability the case on the ground of Power of Attorney. O.p. stated that Power of Attorney is an invalid document which has been drawn up by a British national on an Indian Non-judicial Stamp Paper of Rs.50/- and is also not notarized before any Notary Public.
The complainant filed the case suppressing the material fact and the case is bad for non-joinder of necessary parties. All other allegations are denied by o.ps. As per RBI guidelines high value accounts are periodicals monitored by seeking KYC forms from the customer on repeated occasions complainant was requested to provide his KYC form with the Bank. On January 14, 2015 when complainant came to the Bank he was informed that after expiry of VISA in Foreign Tourist NRO Accounts, the operation was stopped and in case the person have to maintain account beyond VISA expiry date, he/she will obtain approval from the RBI and submit to the Bank for making the account operative again. Since the complainant had requested the Manager-NRI Services to send a mail to that extent, the officer of the Bank had sent the said email to the complainant in the presence of the complainant, also verbally explaining him the difficulty pursuant to the RBI guidelines. The complainant requested the o.p.2 to close all Fixed Deposits account and transfer the proceed to his savings Bank account no.1143883763. Since the penalty of sum of Rs.1.2 lakhs (Approx) has been levied at the time of premature closure of the deposits, there is no scope of the said sum been reflected in the current savings account statement of the complainant. The complainant made out a false story with the motive of unlawful and unjust enrichment.
It is denied that the bank had committed unfair trade practice by not explaining or notifying the consequential fiscal deduction for transfer of the NRE account into NRE savings account. In view of the circumstances the complaint case is liable to be dismissed in limini with exemplary cost being imposed upon the complainant.
Decision with reasons
We have gone through the pleadings of the parties and materials on record evidence in particular.
Complainant filed the instant case through his constituted Attorney Sri Amit Kr Chakrabarty and the authorization has been filed by Notary Public Affidavit.
It is admitted fact that the complainant had opened an account with o.p.1 since long and it is also admitted fact that Rs.1.2 lakh (approx) had been deducted due to premature withdrawal of TD account of the complainant. Complainant alleged that he was not informed that such amount would be deducted for changing his account from NRE account to NRE savings account. From Annexure-E with the complaint petition we have observed that ‘in case the person have to maintain account beyond VISA expiry date, he/she will obtain approval from the RBI and submit it to the Bank for making the account operative again.’ In the instant case the o.ps had not asked for availing of the same from RBI rather they gave the instruction for withdrawal fixed deposit accounts prematurely and for that reason the complainant had to suffer huge loss of Rs.1.2 lakh approx.
From Annexure E with the complaint petition we have observed that complainant received an email dt. 14.01.2015 from o.p. and by that email complainant was informed that operations in the account would be stopped on the expiry of VISA. In case the person have to maintain account beyond VISA expiry date, he/she will obtain approval from Reserve Bank of India(RBI) and submit it to the bank for making the account operative again.
It was further informed that he/she will require RBI’s specific approval for repatriation of funds abroad from this account if such a request is made six months after the opening of account.
The complainant was informed about such rules framed by RBI on 14.01.2015 and on the same date he visited the o.p. Bank. But it is curious enough that o.p. had not asked him to bring the RBI approval rather they changed his account type from NRE account to NRE Savings account. At the time of changing the account type complainant had to put his signature for premature withdrawal of his Term Deposit Accounts. And for that premature withdrawal o.p. had charged the penalty charges resulting deduction of Rs.1.2 lakh from the complainant’s account. O.p. had not stated anything that the complainant’s VISA was already expired at that point of time. Moreover, Bank had not provided any circular that all NRE Accounts were required to be changed to NRE savings account. It was also not informed to the complainant that he had to withdraw all his Term Deposits prematurely for changing the account type from NRE account to NRE Savings account.
In their w/v o.p. stated that they required the KYC time to time. But in the instant case we have not observed any document that op had asked for KYC from the complainant. Apart from this, o.p. had not filed any scrap of paper wherefrom it would reveal that complainant had not submitted the KYC documents.
O.ps had not explained the consequential effect of premature withdrawal of Term Deposits of the complainant. Why the bank asked the complainant to withdraw the Term Deposits prematurely, bank had not given any reply. We have not found any document that it was required to change the account type and at the same time it was required to withdraw the Term Deposits prematurely. Had it been so, the bank had to inform the complainant in writing. But bank did not act so. The bank ought to have informed the complainant that he would suffer loss of Rs. 1.2 lakh for changing the nature of account.
In view of above we find deficiency in service on the part of o.p. Bank. Thus the complainant has substantiated his case and as such he is entitled to get relief.
Hence ordered.
That the case no. 207/2016 is allowed on contest with cost. O.ps are jointly and/or severally directed to refund of Rs.1.2 lakh in favour of complainant, Gary Kelvin Porter along with compensation of Rs. 10,000/- for causing harassment and mental agony and litigation cost of Rs. 5,000/- within 30 days from the date of this order i.d., an interest @ 10% p.a. shall accrue over the entire sum due to the credit of the complainant till full realization.
Supply certified copy of this order to the parties free of cost.
