Tripura Consumer Commission Holds SBI Liable for Negligence in Hacking Case

Case Title: Satish Debbarma vs. State Bank of India & Others
Case No.: A.3 of 2024
Judgment Date: June 21, 2024
Forum: Tripura State Consumer Disputes Redressal Commission, Agartala

Case Overview

The Tripura State Consumer Commission ruled in favor of the appellant, Satish Debbarma, against the State Bank of India (SBI) for negligence and deficiency in service, which resulted in hackers withdrawing ₹1,49,500 from his account. The Commission ordered SBI to refund the amount and awarded compensation to the complainant.

Key Allegations by the Complainant

1. Fraudulent Transaction: The complainant was tricked into sharing an OTP over a call, leading to unauthorized transactions of over ₹3,00,000.
2. Bank's Delayed Action: Despite being informed promptly on August 19, 2022, the Branch Manager only deactivated the account after substantial funds were stolen.
3. Negligence by Bank Officials: The complainant alleged that SBI officials, particularly System Administrator Sukanta Das, failed to take timely action to recover the hacked amount.
4. Partial Refund: While ₹1,96,000 was refunded, the remaining ₹1,49,500 was not recovered due to the bank’s inaction.

Findings by the Commission

1. Delayed Response by SBI: Evidence showed that ₹1,49,500 could have been recovered if the bank had acted promptly. Funds remained on hold in the bank’s parking account until August 22, 2022, yet no action was taken to secure the money.
2. Negligence by Officials: The System Administrator and bank staff failed to provide adequate support despite repeated requests from the complainant.
3. Holidays Not a Justifiable Reason: The bank cited weekend holidays as a reason for inaction, but the Commission dismissed this as unacceptable given the urgency of the matter.
4. Deficiency in Service: SBI's failure to act promptly and its lack of diligence were deemed clear examples of service deficiency.

Judgment

The Commission overturned the District Commission’s earlier decision to dismiss the complaint. It directed SBI to:

1. Refund the Remaining Amount: ₹1,49,500 to the complainant within three weeks.
2. Compensate for Mental Agony: ₹50,000 for negligence and the distress caused to the complainant.

Failure to comply within the stipulated period may lead to further legal consequences under the Consumer Protection Act, 2019.