Cyber fraud is something most of us have encountered, either as victims or witnesses. But what happens when a bank’s negligence facilitates such fraud? In a recent ruling, the adjudicating authority (AA) under the Information Technology (IT) Act has set a precedent for accountability in the banking sector. On 21 st January 2025, in Complaint Case No. 3 of 2019 , the principal secretary of IT for Maharashtra state and the AA under the IT Act ordered Axis Bank to pay Rs 1.76 crore with 18% interest, Rs 50 lakh as compensation, and Rs 3 lakh in legal costs to Dhule Vikas Sahakari Bank (DVSB) for unauthorized transactions caused by the bank’s negligence. Under the IT Act, the AA, who is the state IT secretary, has the authority to adjudicate cyber fraud cases involving claims for injury or damage up to Rs 5 crore. The AA has powers of a civil court and can hear complaints related to violations under the IT Act. Victims of cyber fraud, whether individuals or entities, can approach the AA f...
New days, New ways... A platform featuring Courtroom drama, Opinions, and Commentary!