Kotak Mahindra Bank LTD - Credit Card Fraud - Forcing to Pay Outstanding Amount

hussainuffra88

hussainuffra88

New member
Bank Name
Kotak Mahindra Bank LTD
Customer Care Number
1860 266 2666
Loss Amount
43677
Ratings
1.00 star(s)
Opposite Party Address
Mobiwik, Gurugram Party
Under instructions from and on behalf of my client Mrs. Uffra Afzal Husain, aged 36 years, resident of [Your Address], I do hereby serve you the following legal notice:

  1. That my client was issued a Credit Card by your bank, Kotak Mahindra Bank Ltd., on 22 April 2025. This was her first ever credit card, and it remained unused and securely placed in her cupboard from the date of receipt.
  2. On 29 April 2025 at around 2:50 PM, my client received a phone call from a person impersonating a Kotak Mahindra Bank employee, stating that the credit card needed activation and that the credit limit would be increased.
  3. The said person fraudulently directed her to the Kotak Bank App and manipulated her to share an OTP under false pretenses. Immediately thereafter, a transaction of INR 43,677.25 was carried out without her authorization to Mobikwik.
  4. My client, upon realizing the fraud, immediately visited the local Police Station and reported the matter. A complaint was also lodged with the National Cybercrime Portal within 24 hours (Complaint No. 21904250050179 dated 30 April 2025), following which the complaint was forwarded to Kondhwa Police Station and a formal FIR was lodged.
  5. Investigations have revealed that the amount was transferred to an unknown party in Gurugram. This clearly establishes that the transaction was unauthorized and fraudulently induced, falling under the category of identity theft and social engineering.
  6. My client was issued a replacement card on 6 May 2025 for safety reasons.
  7. Despite being made aware of the fraud and an FIR being filed, your bank has continued to demand the payment of INR 44,192.64 and even attempted to convert the amount into EMIs, which clearly reflects misconduct and deficiency of service on part of the bank.
  8. It is both concerning and suspicious that fraudsters were aware of the issuance of a brand-new card — this points to a potential data leak or insider involvement, for which the bank is squarely liable.
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LEGAL GROUNDS AND RELIEF CLAIMED

  • Under Reserve Bank of India (RBI) Circular - DBR.No.Leg.BC.78/09.07.005/2017-18 dated July 6, 2017, regarding Limiting Liability of Customers in Unauthorized Electronic Banking Transactions, a customer shall have zero liability in cases where the unauthorized transaction occurs due to contributory fraud/negligence/deficiency on the part of the bank or a third party, even when the customer notifies the bank after seven working days.
  • Further, in Punjab National Bank v. Leader Valves Ltd. (2008) 8 SCC 258, the Hon’ble Supreme Court held that banks are under a statutory and contractual obligation to ensure safety of customers' funds.
  • In ICICI Bank Ltd. v. Shanti Devi Sharma, the National Consumer Disputes Redressal Commission (NCDRC) held that the bank cannot recover amounts arising from fraudulent transactions if the customer has taken due care and reported promptly.
  • Under Section 43 of the Information Technology Act, 2000, any unauthorized access or fraud involving personal data and credentials, like OTPs, is punishable, and the victim is entitled to compensation from the entity responsible.
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MY CLIENT DEMANDS THE FOLLOWING:

  1. Immediate reversal of the said fraudulent transaction amount (INR 43,677.25) and waiver of the falsely accrued outstanding amount (now INR 44,192.64).
  2. A written confirmation from Kotak Mahindra Bank Ltd. that no adverse action will be taken against her CIBIL score or any other credit reporting agency.
  3. A formal explanation as to how unauthorized third parties obtained information regarding the issuance of the said card.
  4. Compensation for mental harassment, negligence, and failure of due diligence on part of the bank, as per RBI and IT Act guidelines.
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FAILURE TO COMPLY with the above demands within 15 days of receipt of this notice shall constrain my client to initiate appropriate civil and criminal proceedings under applicable laws, including but not limited to the Consumer Protection Act, 2019, Information Technology Act, 2000, and Indian Penal Code (Section 420, 406, 468), and also approach the Banking Ombudsman and the RBI, at your sole cost and risk
 
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