Consumer Commission Fines HDFC Bank for Freezing Senior Citizen's Funds
The District Consumer Disputes Redressal Commission, Chandigarh, has directed HDFC Bank's Sector 22 B branch to pay Rs 20,000 in compensation to a 63-year-old senior citizen for failing to release his frozen amount of Rs 2,00,000 without any explanation. The Commission also ordered the bank to immediately credit the frozen amount back to the complainant's account.
How the Fraud Unfolded
Balwinder Singh, a resident of Banur, Mohali, Punjab, reported that on April 3, 2024, he received a fraudulent phone call from unknown individuals who falsely claimed that his son was in their custody after narcotic substances were allegedly recovered from him. The scammers made him speak to a person impersonating his son, who mimicked his voice and mannerisms. Under threats of serious consequences for his son, Singh was coerced into transferring Rs 2,00,000 to the bank account of one Mihar Kumar Gupta. He made the transfer through a bank branch in Banur.
Immediate Action and Bank's Inaction
After speaking with his son and realising the scam, Singh immediately approached the HDFC Bank branch in Industrial Area, Phase-II, Chandigarh, and successfully got the transferred amount frozen. He also filed a complaint with Police Station Sector-31, Chandigarh. Despite repeated visits and written requests to the bank authorities to release the frozen amount, the bank failed to take appropriate action. Singh's account was maintained at the Sector 22-B branch, and although the amount was frozen through another branch as per banking guidelines for fraudulent transactions, the bank did not facilitate its release.
Commission's Observations and Order
The bank did not appear before the Commission despite service of notice, and was proceeded against ex-parte on September 11, 2025. The Commission noted that it was undisputed that the amount originally belonged to the complainant and that he had promptly reported the matter to the bank and police. Once the complainant completed the required formalities, it was incumbent upon the bank to take a reasoned decision and communicate it within a reasonable period. The Commission observed that "continued retention of the complainant's money without any explanation or resolution, despite repeated approaches made by him, amounts to a deficiency in service." The complainant, a senior citizen, suffered inconvenience, mental agony, and harassment due to the bank's inaction. The Commission directed HDFC Bank to release and credit the frozen Rs 2,00,000 to Singh's account and pay Rs 20,000 as compensation for harassment and litigation expenses.
