Court Orders Indian Bank to Release Withheld Pension Funds in Cyber Fraud Case

A Delhi court has instructed Indian Bank to release Rs 77,000 withheld from a pensioner's account, challenging a lower court's decision. The bank had classified the case as 'not fraud on bank.' The court highlighted RBI guidelines protecting fraud victims and criticized the trial court's interpretation.

A Delhi court has ruled in favor of a pensioner, ordering Indian Bank to release Rs 77,000 that had been withheld following allegations of cyber fraud. The court noted that the bank's internal classification should not deny relief to victims.

Presiding over the case, Additional Sessions Judge Hargurvarinder Singh Jaggi found fault with a previous trial court’s decision, emphasizing that the bank failed to present evidence that the victim, Yogendra Kumar Singh, had knowingly shared sensitive information leading to the fraud.

The judge criticized the initial dismissal of Singh’s plea based on a police status report, highlighting its non-compliance with RBI guidelines on unauthorized transactions. The sessions court has mandated the immediate release of the funds and scheduled further proceedings.