Nivedita Bhardwaj Comments on Madhya Pradesh High Court Ruling Granting Relief to Depositors in ₹36.4 Lakh Post Office Fraud Case

The Madhya Pradesh High Court has granted relief to depositors in a ₹36.4 lakh fraud involving National Savings Certificates (NSCs) and term deposits at a Post Office, in which employees were found to have facilitated fraudulent transactions and issued fake passbooks.

Commenting on the judgment in ET Wealth Online, Nivedita Bhardwaj observed that the deposit holders succeeded because the Madhya Pradesh High Court found that they had acted in good faith and had been dealing with persons who were employees of the Post Office. The employees had facilitated the opening of accounts and issued passbooks, which were subsequently found to be fake.

Nivedita emphasised that depositors should ensure that all deposits are made through proper Post Office channels and that they receive and preserve official documents, including passbooks, deposit receipts, account details and other acknowledgements. She also advised depositors to periodically verify whether their accounts and deposits are accurately reflected in the Post Office’s records. In case of any discrepancy, such as a transaction not appearing in the records or a mismatch in the passbook, depositors should immediately raise a written complaint with the concerned Post Office and retain proof of the complaint.

Further highlighting the remedies available to affected depositors, Bhardwaj stated that in cases involving fake passbooks or accounts that were never actually opened, depositors should also utilise the claim mechanism prescribed by the Department of Posts. She noted that the present judgment clarifies that such situations are specifically contemplated under the Department of Posts’ circular dated May 27, 2021.

The judgment highlights the importance of depositor protection and the safeguards available to individuals who have acted in good faith while dealing with authorised personnel of a public institution.

Read the full article here: https://economictimes.indiatimes.com/wealth/legal/will/rs-36-4-lakh-fraud-in-post-office-through-nsc-and-term-deposit-india-post-employees-convicted-madhya-pradesh-hc-grants-relief-to-depositors/articleshow/135341301.cms 

Last Updated on 30 October, 2026