The Madhya Pradesh High Court has directed the Department of Posts to process compensation claims of depositors who lost ₹36.4 lakh in a fraud involving forged National Savings Certificates (NSCs) and term deposit documents at the Bina Post Office.
The fraud came to light after several customers were allegedly approached by India Post employees who offered assistance in opening deposit accounts. The employees collected money from the customers and issued passbooks and deposit documents that were later found to be forged. Investigations revealed that the accounts had never actually been opened.
The employees involved were subsequently arrested, prosecuted and convicted. However, the postal department initially refused to reimburse the victims, arguing that the employees were not officially posted at the Bina branch and that depositors should have approached authorised personnel at the counter.
Challenging the department’s decision, the victims approached the Madhya Pradesh High Court, arguing that they had acted in good faith while dealing with individuals who were genuine employees of the postal department.
On October 15, 2026, Justice Maninder S. Bhatti observed that ordinary customers could not reasonably be expected to know the internal posting or transfer details of postal employees. The court noted that the depositors had no reason to question the employees’ authority when they approached them within the post office premises.
The court also referred to the Department of Posts’ circular dated May 27, 2021, which provides a mechanism for addressing cases involving accounts that were never opened or fake passbooks were issued.
The victims have been directed to submit the prescribed claim forms within 30 working days. The competent authority must process their claims within 90 days. The court also directed that applicable interest be paid in accordance with the law.
The ruling offers relief to depositors affected by the fraud and underscores the importance of institutional accountability in protecting customers’ savings.
