A widow’s fixed deposit was used by the State Bank of India to recover her late husband’s personal loan, even though she was not a borrower, co-borrower or guarantor in the loan. The Allahabad High Court has now ordered SBI to return Rs 19,90,693 with interest and pay another Rs 1 lakh as compensation.
The Lucknow bench of the Allahabad High Court also questioned the way the bank recovered the money. The court found that SBI had no legal basis to directly debit the woman’s account for her husband’s dues and directed the bank to refund the money within four weeks.
