Postal department told to pay Rs3 lakh for denying benefits under PPF scheme

The Thane consumer forum has directed the Department of Posts to pay a compensation of Rs3 lakh to an Ambernath resident for denying him benefits under an investment scheme and causing him mental agony.

In 1996, Satish and Sunita Sable had approached the department to start a joint public provident fund (PPF) account. According to the order, Sable was informed that he would be required to invest a certain amount in the account every year. Accordingly, he started depositing the amount in the account from January 1996.

"The complainant kept on investing the money for 12 years and till 2008 Rs 3,37,300 had been accumulated in the PPF account. Problems arose in 2009 when the complainant approached the department to deposit the yearly money. The department refused to accept the amount, saying the scheme does not allow investors to have a joint account," reads the order.

Sable in his complaint said that the department accepted money for 12 years and no one spoke about the rule. He said that after so long the department said it would not be able to give him the benefits of the investment.

In its reply to the forum, the department claimed that Sable while opening the account had gone through the terms and conditions of the scheme and was thus well aware of the fact.

After hearing both parties, the forum held the department guilty of deficient service. It said, "The department used the money for almost 12 years and after 12 years the department informed the complainant that they will not be able to provide with the benefit as it did not fit in their rule book."

The forum has directed the department to pay the amount within a period of two months, failing which the department will have to pay a penalty of Rs 50000 on the compensation amount.