The state consumer disputes redressal commission directed Canara Bank to refund ₹ 45,000 along with 9% annual interest, to a city based couple over fraudulent transactions from their account, while enhancing the compensation payable to them from ₹ 7,000 to ₹ 35,000.
The order came on an appeal filed by Sumit Chhabra and his wife, Payal Chhabra, seeking enhanced compensation against the district consumer disputes redressal commission-1’s February 2, 2026, order. The couple had been maintaining a joint savings account with the bank for over 10 years, according to the complaint. On October 25, 2023, two fraudulent transactions of ₹ 24,998 and ₹ 19,999, totalling around ₹ 45,000, were debited from their account. They had initially approached the district commission, which directed the bank’s Sector 34 branch to refund ₹ 44,997 with 9% annual interest from the date of debit and pay ₹ 7,000 as consolidated compensation for mental agony, harassment and litigation expenses. Modifying the district commission’s order, the state commission increased the compensation to ₹ 35,000. The bank was also directed to refund the disputed amount with interest at 9% per annum from the date of debit.
The complainants said they immediately informed the bank, submitted the required documents and reported the fraud to the cybercrime cell on the same day. Despite repeated representations and a complaint to the Reserve Bank of India (RBI), the amount was not refunded. The bank reportedly informed them that their claim had been rejected by the beneficiary bank. The couple alleged deficiency in service and unfair trade practice, arguing that the bank was responsible for safeguarding their funds and addressing unauthorised transactions. Dissatisfied with the relief, the couple approached the state commission, seeking enhanced compensation. The amount covers mental agony, physical harassment, deficiency in service, unfair trade practice and litigation expenses.
