Woman applies for 130 shares, bank enters 65; commission awards Rs 37,000, not Rs 40L
An Ahmedabad woman received partial compensation after a bank error resulted in her being allotted fewer IPO shares than requested. The state consumer commission ruled in her favor, acknowledging that the bank's clerical error caused financial loss.
Why it matters
This case highlights consumer rights in financial transactions and the legal accountability of banks for data-entry errors.
You apply for a certain number of shares for an Initial Public Offering (IPO) and then discover that the bank has recorded only half of the number! What do you do in such a case where there is a cut in the potential size of your allotment?This is what a woman, an Ahmedabad resident, faced. She claimed the bank's mistake caused her a loss of Rs 42,142 and sought a compensation of Rs 40 lakh.What the case is aboutIn 2022, the woman applied for 130 shares in an IPO. However, the bank recorded her application for just 65 shares, which she claimed resulted in a loss of Rs 42,142.
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