IMPORTANT POINT
Bank cannot afford to disobey orders of Income Tax Department.

J.M. Malik, Member— In this complaint case, Sh. Rakesh Bhartia, the complainant has claimed a sum of Rs.5,00,00,000/- (Rupees five crores only) form HDFC Bank Ltd., OP, as compensation for mental agony, loss of reputation, torture, harassment, etc., for deficiency in services because the HDFC Bank Ltd/OP had freezed all the joint accounts held by the complainant.

2. The complainant is a Chief Executive Officer of a large size Public Limited Company, having a turnover of more than INR 2500 crores and 1300 human beings consisting of Engineers and Professionals of various fields are working under him. The complainant maintains a Savings Bank A/c with HDFC Bank, New Friends Colony, New Delhi, OP. His Account No. is 00011050068579. He also maintains 7 or 8 joint accounts with the members of his family in the HDFC Bank Ltd., New Friends Colony, New Delhi.

3. The Income Tax Department issued notice under Section 226(3) of the Income Tax Act, 1961 instructing the OP to remit a sum of INR.1,03,22,548/- from the single name account on 21.04.2011. On 21.10.2011, the Income Tax Department again issued another notice under Section 226(3) of the Income Tax Act, 1961, directing the Bank to attach the A/c No.00891930002490, another account, as a measure of recovery of income tax dues. The bank had remitted INR 98,135.49. The OP informed the complainant that in compliance of the notice dated 21.10.2011 under Section 226(3) of Income Tax Act, 1961, INR.1,55,047.06 had been remitted from the said account.

4. The complainant was also informed

that the funds available in Bank Account

Nos. 00891600004455, 00891930002817, 00891930002827, 02481930005871, 0248193-0005881, 02481930005898, 02481930005916 and 02482070000189, which belong to other family members of the complainant jointly with him, he being the second holder, would remain under a “No Debit” status, as for, full amount required was paid or after the receipt of the revocation order. The Bank accounts of the family members were also attached.

5. The complainant vide e-mail dated 16.11.2011, questioned the authority of the Manager, regarding freezing the account when the same were not covered under the Income Tax notice. The OP refused to defreeze the account. Since no remedial steps were taken by the OP despite various correspondence, therefore, the banking Ombudsman was approached. The Ombudsman informed that the said dispute was not within the ambit of banking Ombudsman Scheme, 2006. The matter was also reported to the Governor, RBI, higher authorities of the Bank and ultimately, this complaint was filed with the following prayers:-

“PRAYER:

It is therefore, most respectfully prayed that this Hon’ble Forum may kindly be pleased to pass:-

a. an order thereby directing the opposite party to pay a sum of Rs.5,00,00,000/- (Rupees five crores) to the complainant as compensation for mental agony, loss of reputation, torture, harassment, etc., for deficiency in services;

b. an order thereby directing the opposite party to pay a sum of Rs.20,000/- to the complainant as cost of litigation;

c. any other or further order which this Hon’ble Court deems fit and proper under the facts and circumstances of the case in favour of the complainant and against the opposite party”.

6. We have heard the counsel for the parties. The learned counsel for the complainant vehemently argued that the above said unauthorized act on the part of the OP has caused lot of mental agony and anguish coupled with harassment, monetary and loss of reputation. He explained that under these circumstances, the complaint should be admitted. It was also pointed out that the order passed by the Income Tax Authorities to recover the amount had been reversed by the Appellate authority. The accounts of the complainant have defreezed. It is contended that the complainant was harassed for no fault on his part.

7. On the other hand, a copy notice issued under Section 226(3) of the Income Tax Act, 1961, has been placed on file. Its r