Bank ordered to refund constable’s salary after erroneous deduction
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A Punjab consumer commission ordered a private bank to refund 73,060 rupees to a head constable in the Punjab Police after the bank deducted the amount from his salary account.
The constable received a no-dues certificate after repaying a joint agricultural loan he held with his father, and then redeemed the mortgaged land. However, the bank later deducted the money, claiming outstanding dues on other accounts.
The commission ruled the bank did not prove the legality of the deduction and failed to explain the charge. It determined that banks must be transparent and accountable when handling customers’ finances, especially salary accounts that people rely on for daily expenses. The commission noted that once a bank issues a no-dues certificate and releases mortgaged property, the borrower reasonably expects the loan to be fully paid.
The commission directed the bank to refund the deducted amount, pay 25,000 rupees in compensation for the inconvenience and mental distress caused to the constable, and cover 11,000 rupees in litigation costs. The ruling emphasizes banks must adhere to contractual terms when making adjustments to accounts and cannot unilaterally deduct funds without providing prior explanation or communication.
