The Bengaluru Urban District Consumer Disputes Redressal Commission has directed a credit co-operative society to return a 66-year-old woman’s fixed deposit of ₹3 lakh, along with interest at 9.5 per cent per annum, after finding deficiency in service over its failure to repay the amount for nearly six years after maturity.
The Commission also awarded ₹25,000 as compensation for the financial hardship and mental agony suffered by the complainant and ₹10,000 towards litigation expenses.
The order, dated September 28, 2026, was passed by the III Additional Bengaluru Urban District Consumer Disputes Redressal Commission, comprising President Shivarama K and members Rekha Sayannavar and Suma Anilkumar, on a complaint filed by Sabitha.
Commission Finds Deficiency in Service
The Commission found that the society had failed to honour its repayment obligation despite the expiry of the fixed deposit term and several requests from the depositor.
It noted that the complainant had made repeated personal visits seeking repayment of her principal amount and accrued interest, but the society continued to withhold the money.
The Commission observed that the prolonged non-payment had caused financial difficulties and considerable mental distress to the complainant.
In reaching its conclusion, the Commission relied on the fixed deposit receipt, the complainant’s affidavit and the supporting documents placed on record.
The society did not appear before the Commission despite receiving notice of the proceedings. It also failed to submit any evidence challenging the woman’s claims.
Fixed Deposit Matured in October 2020
Sabitha had invested ₹3 lakh with the credit co-operative society on October 11, 2017, for a period of three years. The deposit carried an annual interest rate of 9.5 per cent and was scheduled to mature on October 11, 2020.
According to her complaint, she approached the society when the deposit matured and requested payment of the principal and accumulated interest.
However, instead of releasing the funds, the society asked her to return after one month.
When she approached the society again in November 2020, she was informed that the repayment process required additional time.
The complainant continued pursuing the matter through personal visits and requests but received no payment.
She maintained that the funds were required to meet personal and family financial commitments.
Legal Notice Went Unanswered
After failing to recover her investment, Sabitha issued a legal notice to the society on February 25, 2026, demanding repayment.
Although the notice was served, the society did not respond.
She subsequently filed a consumer complaint under the Consumer Protection Act, 2019, alleging deficiency in service and unfair trade practice.
During the proceedings, the Commission examined the documentary evidence and noted that the fixed deposit had matured in October 2020, yet the society had neither returned the principal nor paid the accrued interest.
With no appearance or contrary evidence from the society, the Commission proceeded to decide the complaint on the basis of the available material.
Refund With 9.5% Interest and Additional Compensation
Partly allowing the complaint, the Commission directed the credit co-operative society to refund the principal amount of ₹3 lakh with interest at 9.5 per cent per annum from October 11, 2017, until realisation.
It further directed payment of ₹25,000 for the hardship and mental agony caused to the complainant, along with ₹10,000 towards litigation costs.
The society was given 45 days to comply with the order.
The Commission specified that if payment was not made within the stipulated period, the combined compensation and litigation costs of ₹35,000 would attract interest at 9 per cent per annum from September 28, 2026, until realisation.
