Post Office Fraud: As people age, they often begin saving for their future, seeking investment avenues where their capital remains entirely secure and can eventually generate income when needed. Currently, there are several schemes available in the country that offer a regular stream of income upon investment. The Post Office operates various ‘small savings schemes’ that can serve as a source of regular income.

According to reports, a woman in Karnataka invested Rs 100,500 into a Post Office Senior Citizen Savings Scheme (SCSS) and a savings account. In exchange, the postmaster provided two receipts, complete with his signature and an official stamp. However, the woman never received any documentation linked to the accounts, nor was there any record of the deposited funds.

It was later discovered that the postmaster had absconded with the money. In this case, the Gadag District Consumer Commission has ordered the Post Office to return the woman’s deposit, along with interest. Additionally, the Commission has mandated compensation for the mental distress caused and the legal expenses incurred.

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What is the full story?
The incident dates back to November 14, 2023. The woman, named Lalita, deposited Rs 100,000 to open a Senior Citizen Savings Scheme (SCSS) account and Rs 500 for a savings bank account at the Kodikoppa Branch Post Office. Although the postmaster provided receipts, he failed to issue an SCSS certificate or a passbook for the savings account. After repeated requests for the documents went unheeded, the woman filed a formal complaint against the department.

The post office questions the deposit.
The Post Office has challenged the woman’s claim, stating that they have no record of an ‘SB-26(T)’ receipt being issued, nor is there any entry of the deposited amount in the department’s official records. The woman also presented the cash receipts—bearing the postmaster’s signature and official stamp—before the Commission.

Commission Holds Postal Department Liable
Upon examining the details, the Commission noted that both receipts carried the postmaster’s signature and stamp. Consequently, the woman’s claim could not be dismissed merely because the receipts were not in the prescribed format. The Commission observed that it was the official’s responsibility to maintain a record of the deposited funds and issue the necessary documentation. Therefore, the Commission held the Post Office liable for a deficiency in service.

Commission’s Order
On October 29, 2024, the Commission directed the authorities to refund the amount of ₹1,00,500, along with an annual interest of 6% calculated from November 7, 2024, until the date of actual payment. Additionally, the woman is to be awarded ₹10,000 for mental agony and ₹5,000 as compensation for expenses. The total amount to be paid is ₹1,15,500. This sum must be refunded within 8 weeks.