India’s Biggest 2.18 Cr Cyber Fraud Judgment in IT Act: MP IT Court Order banks to Compensate victim

In a landmark order dated 04/12/2025, the Special Information Technology Court, functioning through the Court of the Adjudicating Officer, Department of Science and Technology, Government of Madhya Pradesh, delivered a historic verdict in a major banking and cyber fraud case.

The complaint was filed by Indira Sharma and Archana Sharma under Sections 43, 43A, and 85 of the Information Technology Act, 2000, against HDFC Bank, Axis Bank, IndusInd Bank, ICICI Prudential AMC, and HDFC Prudential AMC. The case was heard by the Adjudicating Officer (Special IT Court), providing a statutory platform where cyber and banking fraud matters are adjudicated by the IT Secretary–level authority.

The complainants alleged that an HDFC Bank Relationship Manager misused his official access to unauthorizedly change registered mobile numbers and email IDs, activate internet banking, open fake bank accounts, and siphon funds from bank accounts and mutual fund folios. The total claimed loss was ₹2.17 crore.

The Adjudicating Officer found gross negligence and system failure on the part of the respondent banks and AMCs, holding HDFC Bank vicariously liable for its employee’s actions. The respondents were held jointly and severally liable under Sections 43, 43A, 66C, 66D read with Section 85 of the IT Act, 2000.

Compensation awarded:
The total compensation awarded for the financial loss was approximately ₹2.18 crore, along with an additional ₹1 lakh each towards legal expenses and ₹40,000 each towards mental agony suffered by the complainants.

Special IT Court’s Observations

“The Respondent banks have failed to provide any concrete documentary evidence that they have followed the SOP of opening of account and change of important credentials like email id and mobile no. This failure to comply with the SOP led to the fraudster siphoning off huge sums of money from Respondent 1 to the fake accounts opened in with Respondent no. 3 and 4 without getting noticed.
Letting go such an act of severe nature might create a wrong example in the eyes of the public at large and make them loose faith in the Indian banking system. It would make one believe that their hard earned money is not safe in India's well established and publically known brands of the banking fraternity.
Hence, it is established without an iota of suspicion that this act of siphoning of funds from an Octogenarian customer is because of negligent & careless functioning of Respondent Banks. Therefore, Respondent no.3 and 4 is held responsible for the loss of money of the Complainant due to negligence in their banking operations along with giving way to unauthorized access and Security Breach of the customer's account.”
#India’s First Banking Fraud Judgment ₹2.18 Cr Relief to Customers
#Big Banking Fraud Verdict | MP IT Court Orders ₹2.18 Cr Compensation
#Historic Banking Fraud Case | MP IT Court Grants ₹2.18 Cr Relief

#bankingfraud
#cyberfraud #itact2000 #SpecialITCourt #landmarkjudgment #BankLiability #customerrights #cybercrimeindia #HDFCBank
#AxisBank #IndusIndBank #ICICIPrudential #HDFCPrudential #RelationshipManagerFraud #BankNegligence #VicariousLiability

Видео India’s Biggest 2.18 Cr Cyber Fraud Judgment in IT Act: MP IT Court Order banks to Compensate victim канала Cyber Law Pioneers (Cyber Affairs- Yashdeep Talks)