A Telangana consumer commission has directed Union Bank of India to provide a total relief of Rs 2.29 lakh to a lawyer couple after finding deficiency in service. The case involved Rs 1.09 lakh that was allegedly transferred from the couple’s savings account to the bank account of another person.
The Warangal District Consumer Commission, headed by president G Nagaraju and member V Janardhan Reddy, heard the complaint filed by the couple.
Rs 1.09 Lakh Transferred to Wrong Account
The couple had a joint savings account and a joint property term loan account with Union Bank of India. They had taken a property loan of Rs 57.80 lakh, which was repayable in 168 monthly instalments. Their monthly EMI was Rs 66,684, and they had authorised the bank to deduct the EMI from their savings account.
According to the couple, four payments made by their clients between February and December 2024 were wrongly credited to another person’s account. The total amount of these four payments was Rs 1.09 lakh.
Savings Account Also Debited
The couple said that in February 2025, they received a WhatsApp message informing them that Rs 3.35 lakh had been debited from their savings account and transferred to their loan account towards interest. They alleged that the deduction caused their savings account to show a negative balance.
Bank Was Informed About the Mistake
The couple informed Union Bank about the wrongful transfer of Rs 1.09 lakh. According to them, the bank assured them that the issue would be corrected, but the amount was not returned.
The couple later sent legal notices to the bank. However, they said that the bank neither corrected the transaction nor provided a proper explanation for the transfer.
Bank Gives Explanation
Union Bank, through its advocate Sajid Pasha, told the commission that the couple had been regularly paying their EMIs.
The bank said that the couple had taken the loan at an interest rate of 11.95 per cent. However, due to a system-related issue, interest had been deducted at 9.40 per cent instead of 11.95 per cent.
The bank said that the difference was discovered during an audit. According to the bank, its officials informed the couple about the issue and the couple agreed to allow the remaining interest to be deducted from the loan account.
Commission Finds Deficiency in Service
The consumer commission did not accept the bank’s explanation as sufficient. It observed that the bank had not produced documents supporting its claim about the interest adjustment, including the loan agreement and audit report.
The commission also found that the bank had not provided documentary evidence explaining why Rs 1.09 lakh was transferred to a third-party account.
The commission held that the bank had failed to follow the proper procedure and that the transaction resulted from negligence. It described the action as deficiency in service and an unfair trade practice.
Bank Directed to Pay Rs 2.29 Lakh
The commission directed Union Bank of India to take several actions. The bank was ordered to credit Rs 1.09 lakh back to the couple’s account, which had been wrongly credited to a third party. It was also directed to pay Rs 1 lakh as compensation for mental agony and harassment caused by the deficiency in service. In addition, the bank was ordered to pay Rs 10,000 towards litigation costs.
The total relief ordered by the commission comes to Rs 2.19 lakh in these specified components, while the case was described as involving a total relief of Rs 2.29 lakh.
What the Order Means
The case highlights that banks can be held responsible when they make unauthorised transactions or deduct money from a customer’s account without proper information and supporting documents.
The commission also stressed the importance of following proper procedures and maintaining documentary evidence when making adjustments or transactions involving customers’ accounts.
