Pay NSC amount with interest: Conusmer Forum to Chief Postmaster

Ahmedabad, Apr 22 (UNI) The Consumer Disputes Redressal Forum, Ahmedabad Rural, in a recent order directed the Chief Postmaster, the Department of Post, to pay an investor an amount of Rs 30,225 with nine per cent interest from October 1, 2003 until the date of payment following a complaint made by him.

The Forum also ordered the Chief Postmaster to pay complainant Nathubhai J Bhatt of Ahmedabad an amount of Rs 5,000 as compensation for his mental agony and towards cost.

Nathubhai had subscribed to National Savings Certificates (NSCs) worth Rs 15,000 in a maturity value of Rs 30,225. When Nathubhai claimed the maturity amount after six years, he was told that he would get the principal amount of Rs 15,000 but not the interest totalling Rs 15,225 on the grounds of alleged irregularity in the purchase of the certificates by Nathubhai as the certificates had been issued in the name of the firm instead of the individual.

In his complaint to the Forum, Nathubhai said that at the time of purchase of the NSCs, he had been assured of a total sum of Rs 30,225 with interest on maturity. However, when the deposits matured, the postal department declined to repay the amount with interest on the grounds of a departmental circular which, according to Nathubhai, were unfounded. Therefore, the act of the postal department was illegal and amounted to deficiency in service.

The Forum observed that the circular based on which the postal department had deprived Nathubhai of his dues was applicable to the departmental staff and not the common investors.

The National Commission too had clarified this point and added that an investor is entitled to the total amount with interest on maturity of NSCs. The Department of Post contended that the certificates had been issued in the name of Star Distributors and Nathubhai, which, as per the circular, violated 4 (2)(A) of NSC (VIII) Rules 1989.

UNI