Whether poa is valid or invalid (Criminal Law)

This query is : Resolved

Author : Mr. Hitendra Shah

PRO CHAT CALL

Posted On 27 April 2012 at 21:05

If a POA is notarized on 01/02/2011 by Share Broker for its Client as he was providing finance in Margin Trading. It is notarized BLANK, through the Notary of the Broker, without filling in the details of Bank and Demat Account NUMBERS on the said Blank POA and it is handed over to Bank for accepting it and for verification. Bank accepts it Blank as verified and getting filled the account opening forms through the client via Broker on 04/04/2011. Bank opens Bank A/c of the client on 12/04/2011 and Demat A/c on 14/04/2011 and the account NUMBERS of the said accounts are filled in the said POA by the BANK in its own way.

The Client clears all his dues along with interest on 14/09/2011 but the Broker sells all the Balance shares of the client after 14/09/2011 and realised money he transfers in other's A/c fraudulently with the help and support of the said Bank and POA holder of the client. The POA holder was Broker's one of the employees and signatories because the Broker provided Finance to the client in Margin Trading.

I would like to know from the Experts that

1) Whether the said POA is Valid or Invalid because POA was notarized before the said accounts were got opened. POA was notarized on 1/2/2011 and Bank A/c was opened on 12/4/2011 and Demat A/c was opened on 14/4/2011?

2) whether the POA is valid document for the said accounts or whether the said accounts are valid for the said POA?

3) whether is it believed that POA was got Revoked as soon as the Bank filled in the invalid account numbers on the said POA?

4) Whether should the client file a civil case for his claims making party to the Broker or Bank or POA Holder? What is the best option in your opinion? Whether he should file case on Bank for the Claim?

In this case I have few more queries that I would like to ask you in other part.

Kindly explain me with your expert knowledge.

Thanks.

Expert : Devajyoti Barman

PRO CHAT CALL

Posted On 27 April 2012 at 21:20

1. It appears to be valid though perusal of its contents would have helped to conclude conclusively.

2.Both are valid
3. Not revoked but may be inoperative.
4. File claim before the consumer forum.

Author : Mr. Hitendra Shah

PRO CHAT CALL

Posted On 27 April 2012 at 21:33

There was conspiracy between the Bank, Broker and POA Holder. With some reasons in the mind, the Broker and Bank got opened the Bank A/c of the client as if he is a Company or a Partnership firm by filling "Non Individual" Bank A/c opening form from the client. The Broker got signed from the client on the POA, at the bottom of POA, as Director/Secretary/Partner. Now the POA is in the Individual name of the Client and the Bank A/c is in the name of a Company or Partnership Firm. So whether the said POA is Valid or not?

In the Bank A/c opening form there never be required to fill the details of POA Holder in the said form by POA Holder, but the Bank allowed illegally to POA Holder to fill the details of POA Holder on the said Form so that he can operate the said Bank A/c.

The Broker and Banker got filled from the client "Corporate Internet Banking Form" for opening Internet Bank A/c of the client and got opened Corporate Internet Bank A/c of the client and similarly the POA Holder filled his details in the said form to operate the said A/c.

The signature of the client on the POA and Demat A/c opening form differs significantly. In the POA he signed as S. J. Master and in the said Demat A/c opening form he signed as Shantilal Master. in such situation can POA holder operate the Demat A/c of the client?

Kindly explain and guide to the client that how he should proceed?

Thanks.

Expert : Devajyoti Barman

PRO CHAT CALL

Posted On 27 April 2012 at 21:37

You should file complaint under criminal jurisprudence as well.

Author : Mr. Hitendra Shah

PRO CHAT CALL

Posted On 27 April 2012 at 21:51

Sir, how the said POA be said valid when POA was notarized before the accounts were opened?

In other 3 cases, in the verified POA, verified by the Bank, there is no detail of Demat A/c Number is mentioned on the POA but POA Holder has operated the said Demat accounts of the Clients.

There was only one POA Holder in all the cases whereas the Demat accounts of the clients have been operated by other persons also signed as POA Holder.

Expert : ADVOCATE DEFENSE.

PRO CHAT CALL

Posted On 28 April 2012 at 10:16

First check the accounts , just possible that notional losses have not been accounted by you.

If your story is right go to the NSE / BSE where the transactions are done . They have effective system of resolving such issues.

Author : Mr. Hitendra Shah

PRO CHAT CALL

Posted On 28 April 2012 at 10:20

The Arbitration of BSE is the Most corrupt sold in the hands of Brokers and Corporate who behaves like Mafias. There is no Justice to the Investors by BSE and SEBI.