Woman’s FD ‘withheld’ by SAIL employees’ credit society, she wins Rs 26 lakh payout

4 min readNew DelhiJul 17, 2026 05:32 PM IST

The commission directed Steel Authority of India Employees Co-operative Credit Society to refund the deposit money with compensation. (AI-generated Image)

The Kolkata District Consumer Commission held the Steel Authority of India Employees Co-operative Credit Society liable for deficiency in service for failing to release a member’s matured Fixed Deposits (FD) and savings account balance, directing it to refund the money with interest and pay compensation.

A bench of president Manoj Kumar Rai and members Ashoka Guha Roy Bera and Gopal Chandra Roy ordered the society to refund Rs 25.62 lakh towards her fixed deposits and Rs 1.17 lakh towards compensation and other costs.

“From the unchallenged testimony of the complainant, it is proved that the opposite parties have failed to render service by way of permitting the complainant to withdraw money lying in her savings bank account as well as money deposited in her fixed deposit accounts maintained with the society. So, it is proven that service is deficient on the part of society,” the commission said on June 24.

Accordingly, all the points are decided in favour of the complainant and against the society. From the unchallenged testimony of the complainant, the complainant’s case is proved. In the absence of any contrary proof or denial of society, the instant complaint stands.

Depositor denied access to savings

The complainant was a member of the Steel Authority of India (SAIL) Employees Co-operative Credit Society Ltd and maintained a savings bank account with the society. She had also invested approximately Rs. 25.63 lakh in multiple fixed deposits with the society.

After the fixed deposits matured, she repeatedly approached the co-operative society to withdraw the maturity amount and the balance lying in her savings account. However, despite several requests and a formal letter, the society neither released the matured fixed deposits nor allowed her to withdraw the money from her savings account.

Left without any remedy, she filed a consumer complaint before the commission, alleging deficiency in service and seeking release of her deposits along with compensation and litigation costs.

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During the proceedings, the opposite parties failed to appear or file a written statement despite being served with notice, and the matter proceeded ex parte against them.

Society liable for deficiency

The order ruled that it is proved that the complainant approached the society for withdrawal of her matured fixed deposit and the amount lying in her savings account several times, but she was denied withdrawal.

The commission allowed the complaint ex parte and directed the Steel Authority of India Employees Co-operative Credit Society to release Rs. 25.62 lakh along with interest as per the fixed deposit receipts, and Rs. 82,043 from the complainant’s savings account with 4 per cent annual interest. It also awarded Rs. 25,000 as compensation and Rs. 10,000 towards litigation costs, to be paid within 60 days.

Takeaway

This ruling reinforces that co-operative credit societies are accountable under consumer protection law for unjustifiably withholding members’ deposits. It affirms that depositors are entitled to timely access to their matured fixed deposits and savings, and that failure to release such funds constitutes deficiency in service, warranting refund, compensation, and litigation costs.

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Consumers facing similar grievances may contact the consumer helpline in their respective states (West Bengal: 033-2252-0448) or dial the National Consumer Helpline at 1915 for assistance.

Jagriti Rai works with The Indian Express, where she writes from the vital intersection of law, gender, and society. Working on a dedicated legal desk, she focuses on translating complex legal frameworks into relatable narratives, exploring how the judiciary and legislative shifts empower and shape the consciousness of citizens in their daily lives.

Expertise

Socio-Legal Specialization: Jagriti brings a critical, human-centric perspective to modern social debates. Her work focuses on how legal developments impact gender rights, marginalized communities, and individual liberties.

Diverse Editorial Background: With over 4 years of experience in digital and mainstream media, she has developed a versatile reporting style. Her previous tenures at high-traffic platforms like The Lallantop and Dainik Bhaskar provided her with deep insights into the information needs of a diverse Indian audience.

Academic Foundations:

Post-Graduate in Journalism from the Indian Institute of Mass Communication (IIMC), India’s premier media training institute.

Master of Arts in Ancient History from Banaras Hindu University (BHU), providing her with the historical and cultural context necessary to analyze long-standing social structures and legal evolutions. ... Read More

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