Mumbai: The Bombay High Court on Tuesday issued notices to HDFC Bank and the Reserve Bank of India (RBI) after being apprised of a case involving an HDFC Bank employee allegedly siphoning off ₹3 crore from a customer’s fixed deposits (FDs).
A division bench comprising Justices Revati Mohite-Dere and Prithviraj Chavan expressed serious concerns about the breach of trust in the banking system. “Ultimately, people trust a particular bank… A relationship manager takes a person for a ride. What faith will people have in the banking system now?” remarked Justice Mohite-Dere.
The Fraudulent Scheme
The case was brought to court by 53-year-old petitioner Meenakshi Kapuria, who alleged that her relationship manager, 27-year-old Payal Kothari, fraudulently broke her fixed deposits worth ₹3 crore. Kothari allegedly transferred the funds into fictitious accounts before diverting them into her personal accounts. Kapuria claimed she received no SMS or email alerts regarding the transactions.
According to Kapuria’s counsel, Rizwan Siddiquee, Kothari gained her client’s trust over time, even obtaining blank signed cheques under the pretense of investing the funds in mutual funds, gold bonds, and other schemes that promised higher returns. Siddiquee also alleged that the Versova police were pressuring Kapuria to settle the matter with Kothari.
Prosecutor Kranti Hiwrale informed the court that Kothari’s accounts had been frozen, with only ₹30,000 remaining in them.
Court Questions Police and Bank Accountability
Justice Mohite-Dere criticized the police for acting only after the matter reached the court. “Why does an arrest have to be made only when a complainant comes to the court? And you’re asking parties to settle the matter?” she questioned.
Zonal Deputy Commissioner of Police (DCP) Dikshit Gedam, present in court as directed, confirmed Kothari’s arrest earlier that day. He also revealed that the case was transferred from Police Inspector Amol Dhole to Senior PI Gajanan Pawar for closer supervision. Gedam assured the court that a departmental inquiry would be initiated against Dhole for negligence.
The judges further probed why Kapuria had not received transaction alerts. Gedam explained that Kothari had fraudulently updated the bank’s records with her own mobile number and email address. The judges called this lapse “extremely serious” and demanded a thorough investigation into HDFC Bank’s role.
Accountability of Banks and RBI Circulars
Justice Mohite-Dere underscored the need for accountability, asking, “Is there no accountability of any bank when money is siphoned off under their nose?” Siddiquee referred to an RBI circular to emphasize regulatory responsibilities.
The court directed HDFC Bank’s senior manager of the Lokhandwala branch or the regional manager overseeing Mumbai to be added as respondents in the case, along with the RBI. Justice Mohite-Dere remarked, “This can’t be tolerated. Today, this is one case that has come up. What about senior citizens who rely on their fixed deposits for financial security in old age?”
Next Steps
The court has scheduled the next hearing for December 13. It has instructed the authorities to provide details of the balance in Kapuria’s account both before and after the First Information Report (FIR) was filed on October 30. The judges emphasized the need to determine whether any funds were siphoned off after the FIR was lodged due to a lack of prompt action by the bank or police.
This case highlights critical concerns regarding banking security and the importance of accountability from both financial institutions and regulatory authorities.
