Mangaluru: Consumer court orders post office to refund retired teacher for unjust deduction from pension deposit

A consumer court has ordered the post office to refund the deducted amount from a retired teacher’s pension deposit along with interest and pay her compensation.

Case Background:

Rita Noronha, a retired teacher from Mangaluru, deposited Rs 22 lakh from her pension at the Kankanady Post Office on February 28, 2020, for a fixed term of 5 years. The deposit was supposed to earn an annual interest payment of Rs 1,74,355. However, due to financial difficulties, she requested to withdraw the deposit early on May 18, 2023.

Instead of the full Rs 22 lakh, the post office transferred Rs 20,20,994 to her account, withholding Rs 1,79,006 without providing sufficient explanation for the deduction.

Approach to Consumer Court:

Feeling wronged, Rita filed a complaint with the Dakshina Kannada District Consumer Court on July 13, 2023, seeking justice. The court, in its ruling on September 23, 2024, ordered the post office to refund the deducted amount of Rs 1,79,006 with 8% interest within 45 days. Additionally, the court directed the post office to pay Rs 25,000 as compensation and Rs 10,000 to cover legal expenses.