The National Consumer Disputes Redressal Commission (NCDRC) has reinstated an order directing Bharti Airtel to compensate an Army man who lost ₹2.87 lakh due to a SIM swap scam. The case involved a fraudulent issuance of a duplicate SIM card, which led to unauthorized transactions from the victim’s bank account.
Background of the Case
The complainant, an Army personnel, experienced unauthorized transactions after a fraudster obtained a duplicate SIM card in his name. The fraudulent SIM card allowed the scammer to intercept bank communications and conduct unauthorized withdrawals from his bank account. Despite the complainant’s location and the nature of his service, the state commission had earlier dismissed his appeal on technical grounds related to territorial jurisdiction.
NCDRC’s Decision
The NCDRC observed that Airtel failed to perform due diligence in verifying the identity of the person requesting the duplicate SIM card. The commission highlighted discrepancies between the original documents on file and those presented for the duplicate issuance, which featured different photographs and lacked necessary verification. The lack of proper verification directly facilitated the fraud.
The commission set aside the state commission’s order and upheld the district forum’s decision, directing Airtel to:
- Compensate the complainant with ₹2.87 lakh plus 4% interest: This amount covers the fraudulently withdrawn funds.
- Pay an additional ₹1.15 lakh as compensation and litigation costs: This serves as a punitive measure against Airtel for their negligence.
The NCDRC’s ruling underscores the importance of stringent verification processes by telecom providers to prevent such fraudulent activities and protect consumers from significant financial losses.