Failure To Disburse Matured Amount Under Recurring Deposit Scheme, Howrah District Commission Holds Sahara Credit Cooperative Society Liable

Brief Facts:

The Complainant opened a recurring deposit scheme named 'SAHARA. G. ANOKHA' on 12th June 2014. This scheme was with Sahara Credit Cooperative Society (“Sahara Credit”) and was set for a duration of 72 months, requiring a monthly deposit of ₹ 5,200/-. Over a period of 30 months, up to 19th December 2016, the Complainant deposited a total of ₹ 1,56,000/-.

Sahara Credit issued a passbook for this recurring deposit scheme and provided corresponding receipts for each deposit made by the Complainant. Upon the expiry of the 72 months, the Complainant sought to withdraw the amount due. He contacted Sahara Credit and submitted the necessary original documents for the withdrawal. However, Sahara Credit did not accept the papers but assured the Complainant that the amount would be refunded by cheque after a few months, in accordance with the scheme's rules.

Despite repeated visits to Sahara Credit's office and earnest requests, the Complainant did not receive the payable amount. In an attempt to resolve the issue, the Complainant sent a letter, requesting the refund of his deposited amount along with any other amounts due under the scheme. However, no resolution was provided. Feeling aggrieved, the Complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission, Howrah, West Bengal (“District Commission”).

Sahara Credit asserted that it had not refused to pay the maturity amount. Further, the Complainant's allegations were false and fabricated as he never presented the original certificate and KYC documents necessary for disbursement.

Observations by the Commission:

The District Commission observed that Sahara Credit accepted regular monthly deposits from the Complainant up to the 30th instalment, totalling ₹ 1,56,000/-. The Complainant sought to withdraw his deposited amount, but Sahara Credit failed to honour his request. According to the terms and conditions outlined in the passbook, the Complainant was required to make monthly contributions of ₹ 5,200 for 72 months, after which Sahara Credit was obligated to refund the deposited amount along with the accrued interest. However, the scheme's terms did not specify the refund procedure for incomplete deposits. The District Commission determined that the complainant should have received at least the deposited amount of ₹1,56,000 along with some interest as decided by the OPs.

It was further noted that Sahara Credit had taken deposits with the promise of higher returns but failed to refund the maturity amount despite repeated requests from the Complainant. Sahara Credit did not issue any notice to the Complainant regarding the withdrawal procedure after the plan period expired. Although Sahara Credit cited a Supreme Court embargo order preventing the remittance of the maturity amount, it did not clarify why it continued collecting money knowing it could not disburse.

The District Commission concluded that the Complainant did not receive the payable amount due to Sahara Credit's inaction, which constituted a deficiency in service. Sahara Credit was directed to refund the deposited amount of Rs. 1,56,000/- along with Rs. 5,000 for litigation costs.

Case Title: Murli Dhar Rathi vs The Branch Manager, Sahara Credit Cooperative Society Limited and Others

Case No.: CC/218/2020

Date of Pronouncement: June 14th, 2024