Bank liable to compensate for loss caused due to non-following of procedure and absence of due-diligence

0
213

The NCDRC holding bank is liable for failure on its part to ensure fulfilment of KYC norms and other due-diligence that resulted in fraud of more than Rs.350 Crore. The National Commission has held that bank is vicariously liable for deeds and omission on part of its employees and directed the bank to compensate the loss caused to the Complainant with interest.

The Commission holding bank is liable for absence of due-diligence and finding that acts and omissions constituting negligence on the part of the bank stood established, directed the bank to make the loss caused on account of fraud concocted in connivance with its employees and negligence on part of them.

Full judgment -> Mumbai Metropolitan Region Development Authority vs. Dena Bank & Ors.

LEAVE A REPLY

92 − 91 =