Postal Dept penalised for service deficiency, ordered to return Rs 9 lakh with interest to complainant
The District Consumer Disputes Redressal Commission has directed the Postal Department to pay Rs 9 lakh, along with six per cent annual interest, to complainant Krishna Devi for deficiency in service and unfair trade practices.
The commission also awarded Rs 20,000 as compensation for mental harassment and Rs 10,000 for litigation expenses to the complainant. The judgment came after Krishna Devi filed a complaint highlighting the Postal Department’s negligence in managing her Monthly Income Scheme (MIS) accounts.
Krishna Devi had opened two MIS accounts, one single account with a deposit of Rs 4.5 lakh in 2012 and another joint account with her husband, Suraj Parkash Birdi, for the same amount in 2013. Both accounts were renewed in 2017 after maturity, adhering to the Postal Department’s norms. However, in 2022, the Postal Department informed Krishna Devi that she had received excess interest due to deposits exceeding the prescribed limit of Rs 4.5 lakh for single account and Rs 9 lakh for the joint account. The department demanded that she should return Rs 75,657, while claiming it was excess interest paid to her over the years.
The complainant, however, argued that she had never violated the postal rules and that accounts were opened through authorised agents, who should have ensured compliance with the regulations. She alleged that the department failed to inform her about any irregularities for nearly a decade and only raised the issue during the renewal process in 2022.
Krishna Devi also pointed out that department officials had accepted her deposits without objections, reflecting their negligence. The Postal Department, meanwhile, in its defence, cited Rule 4 of the MIS Rules and Rule 109(1) of the Core Banking Solution (CBS) for Post Office Savings Bank (POSB) Manual, which mandate recovery of excess interest paid on deposits beyond permissible limits. However, the commission found that the department failed to inform the complainant about these rules at the time of account opening or during the investment period. The commission criticised the department for its lack of diligence, highlighting that no recovery notices were issued until 2022, despite the alleged rule violation occurring in 2013.
The commission ruled that the department’s failure to monitor compliance and notify the complainant in a time-bound manner amounted to a clear deficiency in service and unfair trade practices. The panel also dismissed an inquiry conducted by the department, calling it biased and an attempt to shield negligent officials.
In its verdict, the commission partly allowed Krishna Devi’s complaint, directing the Postal Department to release Rs 9 lakh with interest from the date of maturity. Besides, the department was ordered to compensate her for the mental distress caused and cover her litigation expenses. The judgment emphasised on the department’s responsibility to educate consumers about rules and ensure proper checks during transactions.
The Postal Department has been given 45 days to comply with the orders of the commission.
Had opened two Monthly Income Scheme accounts
Complainant Krishna Devi had opened two Monthly Income Scheme accounts, one single account with a deposit of Rs 4.5 lakh in 2012 and another joint account with her husband, Suraj Parkash Birdi, for the same amount in 2013. Both accounts were renewed in 2017 after maturity. However, in 2022, the Postal Department informed Krishna Devi that she had received excess interest due to deposits exceeding the prescribed limit of Rs 4.5 lakh for single account and Rs 9 lakh for joint account. The department demanded that she should return Rs 75,657, while claiming it was excess interest paid to her over the years.
