Mistakes can be made by everyone but acknowledgement of the mistake is necessary so the rectification can be made. When institutions make mistakes due to incompetence, fines are imposed by the government to prevent such matters from happening again. A Government fining its own subordinate branch is bound to spread like a wave amongst all officials; halting negligence.

SBI fined 10k for failing to deposit pensioner’s TDS.
SBI fined 10k for failing to deposit pensioner’s TDS.

Also Read- Consumer Complaints against Bank

Legal Issues Involved

                Government banks are not immune to fines due to mishandling customers, especially when it comes to tax matters. Very little people in India pay tax and the people who do pay tax should not be harassed unnecessarily. The banks should never handle taxed funds with disregard.

Also Read- Banks to be Liable for Failure in Withdrawal of Money

News Article Facts

                Raj Rani Sachdeva had paid Rs. 5204/- tax on her pension salary to SBI but the bank had mismanaged the transfer of those funds into her husband’s (Ved Parkash Sachdeva) account. Mrs. Sachdeva had recognised the mistake and notified SBI of the mistake but it was not take seriously. Mrs. Sachdeva was forced to file a suit with the District Consumer disputes Redressal Forum for a refund so she could pay the Income Tax Department herself but the forum directed SBI to correct the matter; further fining Rs. 5000 for litigation and another Rs. 5000 to Mrs. Sachdeva for mental agony and harassment.

Also Read- Banks Deficiency in Service

Legal Stand point

                Government bank employees have a different demeanor compared to private businesses, there is more chance of negligence from their part. If Mrs. Sachdeva had not taken notice of the mishap by the bank then the Income Tax Department would most likely have summoned her to court; causing further unnecessary losses. The unconcern shown by the bank displayed a sense of immunity regarding the bank’s approach to the matter.

Also Read- Can Bank Charge TDS on FD? Consumer Court reply.

                Banks have a condescending tone when dealing with client as if they are not needed;  respect is not shown where it is due, let alone sometimes a smile. If the shoe was on the other foot and Mrs. Sachdeva had owed the bank money and deposited into someone else’s account by accident, then bank would have hounded Mrs. Sachdeva to pay again anyway; maybe even bring her up on charges. Mrs. Sachdeva would not have been let off so easy, so why let the Bank off Scott free? This litigious case goes to show the necessity of bringing justice to big institutions who devalue their own customers.

Also Read- SBI Consumer Complaint Chandigarh Panchkula Mohali

For case specific advice/details contact TOP/BEST/EXPERT Consumerl Lawyers in Chandigarh, Panchkula and Mohali Tri-City area. (Kharar Derabassi Zirakpur Mullanpur Punjab Haryana)

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