The Adjudicator of Tamil Nadu jolted Indian Bankers out of their cozy slumber by his decision on April 12, 2010 in the case of Umashankar Sivasubramaniam Vs ICICI Bank. In this case, the adjudicator PWC Davidar held ICICI Bank liable to pay damages to the extent of Rs 12.85 lakh on an alleged "phishing" fraud incident involving fraudulent transfer of an amount of Rs 6.46 lakh. In the ICICI Bank phishing fraud case, the Adjudicator clearly documents reasons why he considers it necessary to hold the bank liable not only to repay the involved amount, but also interest and other expenses.
In my opinion, ICICI Bank should be glad that it escaped with only a financial liability instead of also being held liable for criminal liabilities under several sections of the Information Technology Act 2000 (ITA 2000) and the Indian Penal Code (IPC). There was (and still is), a possibility that criminal liabilities would have stuck onseveral officials of the bank for this phishing fraud incident, including Managers of two of its branches, the CISO, the Directors and the Chairman of the Bank, as well as resulted in jail sentence for the officials.
The ICICI Bank phishing fraud case judgment is a landmark judgment in India for several reasons, some of which can be highlighted here.
1. It is a revelation for many in India to realize that there is a judicial office called the "Adjudicator", which it can deliver such decisions. Though Adjudicators are in place for every State and Union Territory in India since March 25, 2003, few have recognized their presence and role. There have been hundreds of phishing fraud cases involving banks over the past few years in India, and a few customers have tried to take legal action for recovery of their losses. However, most phishing fraud victims have approached the Banking Ombudsman or consumer courts in the past. The ICICI bank phishing fraud case was the first instance when a victim recognized the correct jurisdiction for such disputes, and approached the Adjudicator.
Read the complete article here.
In my opinion, ICICI Bank should be glad that it escaped with only a financial liability instead of also being held liable for criminal liabilities under several sections of the Information Technology Act 2000 (ITA 2000) and the Indian Penal Code (IPC). There was (and still is), a possibility that criminal liabilities would have stuck onseveral officials of the bank for this phishing fraud incident, including Managers of two of its branches, the CISO, the Directors and the Chairman of the Bank, as well as resulted in jail sentence for the officials.
The ICICI Bank phishing fraud case judgment is a landmark judgment in India for several reasons, some of which can be highlighted here.
1. It is a revelation for many in India to realize that there is a judicial office called the "Adjudicator", which it can deliver such decisions. Though Adjudicators are in place for every State and Union Territory in India since March 25, 2003, few have recognized their presence and role. There have been hundreds of phishing fraud cases involving banks over the past few years in India, and a few customers have tried to take legal action for recovery of their losses. However, most phishing fraud victims have approached the Banking Ombudsman or consumer courts in the past. The ICICI bank phishing fraud case was the first instance when a victim recognized the correct jurisdiction for such disputes, and approached the Adjudicator.
Read the complete article here.
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