Punjab NRI Commission slaps notice on HDFC Bank for fraud

The Punjab Commission for Non-Resident Indians (NRIs) has issued notice to the HDFC Bank after a Britain-based NRI alleged that an amount of Rs.70 lakh was siphoned off from his account allegedly by an official of the private bank, the commission said Wednesday.

The NRI, Jagdev Singh Sanghia, alleged that the huge amount was siphoned off from his NRI accounts with the HDFC Bank's Model Town branch in Jalandhar city allegedly by Harshdeep Singh Madan, who is a former employee of the bank.

The NRI alleged that Madan, who was public relations officer with HDFC, was assigned to him for personalised services by the bank when he (NRI) opened four fixed deposit accounts in the branch in January 2012.

The fixed deposits were worth over Rs.14.87 lakh each (amounting to nearly Rs.60 lakh) and the maturity date was January 2013.

"In the year 2013, it has been found that an amount of more than Rs.70 lakh was withdrawn from the fixed deposits and the NRI Saving accounts by cheating, forgery and fraud by said Harshdeep Singh Madan in connivance with the bank authorities."

He served legal notice to the bank but received only evasive reply. He approached Grievance Redressal Officer of HDFC Bank at Mumbai, but there was lack of any response. He then sought intervention of this commission for an appropriate action against them, the commission said in a release here.

"This commission has noticed the contents of the complaint. A whopping amount of more than Rs.70 lakh has allegedly been siphoned off from his account."

"This may be for the reasons that the bank accounts of NRIs are more vulnerable. Such like alleged frauds not only create distrust amongst the investors but also expose bank's security," the commission said.

"We feel that this is a fit case for inquiry/probe," the commission added while directing that a notice be issued to the HDFC general manager in Chandigarh.

The HDFC management has been asked to appear before the commission Nov 13.