If you are stuck in such a situation, here is what to do.

Mr. Alok, a young student from a town near Prayagraj, found himself in a distressing situation with Apex Commercial Bank. He discovered that a demat and trading account had been opened in his name without his knowledge or consent. A bank employee, Mr. Sharma, was allegedly behind this unauthorized activity. Furthermore, Mr. Alok had applied for an education loan, for which the bank collected a processing fee of around ₹35,000. Later, the loan was denied under questionable pretexts that were not mentioned initially. When Mr. Alok tried to raise a formal complaint with the bank’s grievance cell, he received no satisfactory resolution. Frustrated, he escalated the matter to the RBI’s Banking Ombudsman. Following this, he began receiving daily harassing phone calls from the bank, but they refused to provide any communication or resolution in writing, leaving him feeling helpless and intimidated.

Advice in such cases

Facing such misconduct from a financial institution can be daunting. Here are the steps you should consider taking:

• Document Everything: Keep a meticulous record of all communications. This includes emails, text messages, call logs (with dates and times), and any letters or documents you have received or sent. If you have phone conversations, try to record them where legally permissible or at least make detailed notes immediately after the call.
• Send a Legal Notice: Through a lawyer, send a formal legal notice to the bank’s head office and the branch involved. This notice should detail the entire sequence of events, the unauthorized account opening, the fraudulent loan process, the harassment, and your specific demands for resolution.
• File a Police Complaint: The actions described, such as opening an account without consent and making threats, constitute potential criminal offenses. You can file a complaint at your local police station or on the National Cyber Crime Reporting Portal (cybercrime.gov.in).
• Approach the Consumer Commission: The bank’s actions amount to a “deficiency in service” and “unfair trade practice” under the Consumer Protection Act, 2019. You can file a complaint with the appropriate District Consumer Disputes Redressal Commission to seek compensation for financial loss and mental agony.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

Several laws in India can be invoked in such a situation:

• Bharatiya Nyaya Sanhita, 2023 (BNS): Provisions related to cheating (Section 318), criminal breach of trust (Section 316), and extortion or criminal intimidation can be applicable against the bank employee and the bank (vicariously).
• Information Technology Act, 2000: Section 66C (punishment for identity theft) and Section 66D (punishment for cheating by personation by using computer resource) are highly relevant if your personal information was used online to open the account.
• Consumer Protection Act, 2019: This Act protects you as a ‘consumer’ of banking ‘services’. You can file a case for deficiency in service and unfair trade practices.
• Reserve Bank of India (RBI) Regulations: Banks are governed by strict KYC (Know Your Customer) norms. Opening an account without proper consent and documentation is a direct violation of these RBI guidelines, making the bank liable for regulatory action.

If you are the complainant

As the person filing the complaint, you need to be systematic:

• Gather Evidence: Compile all your documents, including your ID proofs, bank statements showing the debit of ₹35,000, any communication regarding the unauthorized demat account, and records of harassment.
• Formal Complaints: Ensure you have copies of the complaints filed with the bank’s internal ombudsman and the RBI Banking Ombudsman. These are crucial pieces of evidence showing you tried to resolve the issue amicably first.
• Police FIR: A copy of the FIR or the complaint registered on the cybercrime portal is essential for criminal proceedings.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

As the victim of such fraudulent activity, take these immediate steps to protect yourself:

• Notify the Bank in Writing: Send a registered letter or an official email to the bank immediately, stating that the account was opened without your consent and that they should freeze it instantly. This creates a formal paper trail.
• Secure Your Finances: If you have other accounts with the same bank, monitor them closely. Consider changing your passwords and PINs for internet banking and debit cards as a precaution.
• Log Harassment: Maintain a detailed log of every harassing call or message. Note down the date, time, number, and the gist of the conversation. This will serve as evidence of intimidation.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

The police response can vary. Initially, they might perceive it as a civil or banking dispute and may be hesitant to file an FIR, suggesting you go to the consumer court. However, you must insist that opening an account without consent and subsequent threats constitute cognizable criminal offenses. Under the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), the police are obligated to register an FIR for cognizable offenses. If the local police station refuses, you can send a written complaint to the Superintendent of Police (SP). Filing the complaint through the online cybercrime portal often ensures that it is formally registered and investigated by a specialized unit.

FAQs people normally have

Can I file a case against both the employee and the bank?
Yes. You can name the employee as the primary accused and the bank as vicariously liable for the actions of its employee during the course of employment.

Can I pursue a criminal case and a consumer case simultaneously?
Absolutely. The proceedings are independent of each other. The criminal case aims to punish the wrongdoer, while the consumer case aims to get you compensation for your loss and suffering.

Will I get my ₹35,000 back?
You have a strong chance of recovering the money by proving “deficiency in service” in the Consumer Commission. The court can order the bank to refund the amount with interest and also award compensation for mental harassment.

What evidence is required?

Strong evidence is the backbone of any legal case. You will need:

• Proof of identity and address.
• Bank statements reflecting the debited amount for the loan processing.
• Any account opening form you signed (and importantly, the lack of one for the demat account).
• All written communication (emails, letters) with the bank.
• Call logs and, if possible, recordings of harassing calls.
• Copies of complaints filed with the bank, RBI Ombudsman, and the police/cybercrime portal.

How long will the investigation take?

The timeline can vary. A police investigation under the BNS can take a few months to over a year, depending on the complexity and cooperation from the bank. A case in the District Consumer Commission is designed for speedy disposal, ideally within 3-5 months if there are no major delays, but can sometimes stretch to a year or more depending on the case backlog and appeals.

Advocate Sudhir Rao, Supreme Court of India