The case arose after rogue employees at the Bina branch siphoned approximately Rs 36.4 lakh by issuing fake certificates and passbooks instead of creating genuine accounts. Although the department initially refused reimbursement by arguing depositors handed money to unauthorized staff, the bench firmly dismissed that stance. The court clarified that members of the public cannot be expected to verify internal employee postings when conducting business at official counters.
Key points
The High Court ordered the postal department to refund the lost funds alongside applicabl…: The High Court ordered the postal department to refund the lost funds alongside applicable interest.
The court rejected the argument that customers must know the specific branch postings of…: The court rejected the argument that customers must know the specific branch postings of counter staff.
Reimbursements must be executed in accordance with the procedures outlined in the departm…: Reimbursements must be executed in accordance with the procedures outlined in the department's May 27, 2021 circular.
Sources checked by our analysis pipeline: 1
A recent case in the Madhya Pradesh High Court shows how some employees of the India Post Office Bina branch tricked several deposit holders by giving them fake national savings certificates (NSC) and term deposit advice slips. The total fraud amount was about Rs 36.4 lakh and the Madhya Pradesh Police arrested the India post employees responsible for this fraud. These employees were prosecuted, convicted and are now in Jail. However, the postal department refused to refund the money lost by deposit holders. They claimed that the deposit holders did not do due diligence by verifying if the employees were authorized to work at the Bina post office.
The postal department confirmed these were their employees but said they were not authorised to work at Bina post office. However, for unknown reasons, these employees were sitting at the Bina post office and targeting deposit holders who came to open NSC and term deposits at the Bina post office.
On October 15, 2026, the fraud victims won the case in the Madhya Pradesh High Court. The court ordered the department of…
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