Bank fined Rs 60K after clerical error gets Tirunelveli man notice from I-T department

However, due to a clerical error, the amount was entered as Rs 22,25,980 in bank records.
Failing to pay within 45 days, would attract a 9% interest, the order said.
Failing to pay within 45 days, would attract a 9% interest, the order said.(Representative Image)
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TIRUNELVELI: Holding a nationalised bank guilty of deficiency in service, the District Consumer Disputes Redressal Commission, Tirunelveli, has directed it to pay Rs 60,000 compensation to a customer after a clerical error led to Income Tax (IT) proceedings against him.

S Mariappan, a resident of Tirunelveli, stated that he deposited Rs 2,25,980 in 2018 at the Tirunelveli branch of Bank of India to close his jewel loan. However, due to a clerical error, the amount was entered as Rs 22,25,980 in bank records.

Based on this, in February 2023, the IT Department treated this amount as unexplained income, and directed him to pay a tax of Rs 35,51,912. Shocked by this, he sought clarification from the bank and then moved the Madurai Bench of the Madras High Court seeking relief. Subsequent probe by the bank, as directed by the HC, revealed the error.

Citing mental agony, financial strain, and expenses towards legal proceedings, Mariappan approached the consumer commission seeking compensation. Commission president M Piravi Perumal and member P Shanmuga Priya held the bank liable for deficiency in service and directed it to pay Mariappan Rs 50,000 towards compensation for mental agony and Rs 10,000 towards litigation costs. Failing to pay within 45 days, would attract a 9% interest, the order said.

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