Account wrongly opened, interest must be paid: National consumer forum
It further says that the post office cannot deduct this interest already paid for the account from the depositor
Consumer affairs Picture for representational purpose
The National Consumer Dispute Redressal Commission (NCDRC) has upheld an order of both, Gujarat state Commission and Bhavnagar Consumer Dispute Redressal Forum in a case pertaining to wrongful opening of an account by the post office.
The state and district forum had ordered that the post office will have to pay interest to a citizen for a savings account that he had opened with the post office which was found in violation of rules. It further said that the post office cannot deduct this interest already paid for the account from the depositor.
The matter pertained to one Rasendu Parekh, an employee of the Bhavnagar Municipal Corporation (BMC) who took voluntary retirement on November 1, 2019 and opened a senior citizen saving scheme account (through an agent) with a deposit of Rs 5 lakh on December 9, 2012.
Later during an audit it was found that Parekh sisnot submit necessary forms and that it was in violation of rules as he had opened the account after one month of retirement.
The post office informed Parekh that his account will be closed, and his deposit will be returned. The post office also said that the Rs 92,813 that was paid by way of interest to Parekh so far will be deducted from his account. Of the Rs 92,813 earned by way of interest, Rs 40,290 was still in the account.The post office tookover and deducted the rest Rs 52,604 from his original deposit of Rs 5 lakh.He was then returned Rs 4,47,396 which he refused to accept. Parekh then moved to district forum which ruled in his favour. This was further challenged by the post office in the state forum which also upheld the order.
NCDRC agreed with the district forum's order that it was the duty of the post office to not to open an account if the respondent was not entitled for such facility.
The NCDRF did not agree with the petitioner's argument that Rule 12 of the Senior Citizen Saving Scheme Rules, 2004 stated that if the account has been opened contrary to the rules, then the post office is entitled not to pay any interest on the amount as also to close the account.
The forum stated that despite the rule the post office had accepted the amount and opened the account, even if it was through an agent.
"That being the position, the respondent cannot be saddled with any responsibility and cannot be denied interest, even if Rule 12 prohibits for the same.," it said.