This is a legal case involving allegations of unauthorized ...

Unauthorized Fund Transfer from NRE Account: Bank Acquitted Due to Insufficient Evidence.

Case Laws     FEMA

August 23, 2024

This is a legal case involving allegations of unauthorized transfer of funds from a Non-Resident External (NRE) account by a bank. The key points are: The suit was filed within the limitation period and the court fee deficiency was cured. There was no evidence that the plaintiff No. 2 had changed her residential status from NRI to resident Indian and informed the bank. The plaintiffs failed to prove that the instructions on the cheque were not given by plaintiff No. 2 but written by the bank. The plaintiffs did not discharge the burden of proof regarding the improper encashment of the cheque. The Foreign Exchange Regulation Act (FERA) provisions were not applicable as no complaint was filed with the Enforcement Directorate and the plaintiffs failed to show how FERA applied against the bank. Consequently, the plaintiffs were not entitled to recovery of any amount from the bank.

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