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Lien marking on FD without Account Holders Permission

Page no : 2


The employer wanted a proof that I have Rs 125000.00 before that service agreement however there was no agreement about the lien marking on the FD. March 2009 was typo error, My last working day was March 2010. They waived off the service agreement because I didn't get any speciality training in USA as stated in the service agreement. I left the company and received full and final payment, experience certificate etc from the emplyer. I never gave anybody (citibank or the employer to lien mark the FD). Even that service agreement itselft expired somtime in September 2010 and I applied for FD ecashment in December 30, 2010 but Citibank refused and told me about lien and asked for NOC. I had no idea about it before.

Today I received following response today from Citibank:


We write with reference to our email dated May 26, 2011 on the captioned matter.

 We wish to inform you that, since the receipt of your letter, we have initiated investigation to respond to your concerns conclusively and hence, we request you to grant us 10 more working days.


I had asked them to respond within 7 working days which ends tomorrow June 7, 2011. It seems that till date they were responding without investigating the case.


Since they have been unable to prove their legal ability to lien mark my FD without my written consent, I am now going to send them another letter asking for compensation. If they don't respond positively then I will file a case in consumer court.


Or should I wait for another 10 days and give them a last chance ?


I am not sure if consumer forum will accept my complaint after 6 months. The issue had started on December 30, 2010 and it's already been over 5 months.

Kumar Doab (FIN)     06 June 2011

You have mentioned that bank has written to you: "However, we regret our inability to retrieve the document based on which the lien was marked to your account....".i.e bank has declined to supply you the documents on the basis of which bank has taken a lawful action ( as per them)



You had escalated your complaint and after due investigation, the highest authority in the company AVP/VP conclusively stated that everything has been done as per bank policy/process/practices/law of the land.


Bank can not now make another cunning statement "since the receipt of your letter, we have initiated investigation to respond to your concerns conclusively".

It is believed that you have not approached the nodal officer and you have not raised RTI with PIO/CPIO of the bank, to obtain certified copy of all docs.


Also you have pointed out that your employer:

-wanted a proof, before that service agreement, that I have Rs. 125000.00, which is absolutely illegal.

Then cunningly employer asked you to bring a photocopy of the FD receipt, which is an illegal and unethical, demand, and on getting the same cunningly employer and bank in connivance with each other created a lien in favor of employer without informing you and without your consent, which is another illegal activity.

-however there was no agreement about the lien marking on the FD. Then how can employer get it done?

-hey waived off the service agreement because I didn't get any specialty training in USA as stated in the service agreement.

Then they are duty bound to cancel all implications of the agreement including lien on FD,( lien which was created without your consent and knowledge), and inform you in writing that lien has been vacated.

This was not done, which is another serious default.

-Then even that service agreement itself expired sometime in September 2010.


To give another 10 days or not is your choice. However due to legal compulsions bank and company shall not and can not accept their illegal activity and apologize. They shall utilize the time to seek legal opinion and draft most suitable reply to escape.

You should proceed with your action.

1 Like

prabhakar singh (advocate)     07 June 2011

Dear Nihar!

we are not to prob how it happened?we are simply to put before court that it happened without any legal right,and that it caused injury to us and that is actionable. your case should proceed mainly on these three point.

It is they to say they had any right to do so.i tell you they had none.It is simple ,you wrere owner of money which you entrusted to bank on the term that the will be returned to you back on a particular date with a particlar interest by the bank.This formed a contract between you and bank,and it has all elements of a valid never agreed with the bank confirming upon them any right at any time to modify or to add to terms of this original contract that in case your employer requests the bank to mark a lien in their favor,it shall be open to bank to do so and you shall be having no objection.You have also never entered with a contract with your employer that that you have fd deposit with so and so bank in which your employer had right to get marked a lien to which you shall have no objection.And in absence of such a contract bank cant justify its' action even if they have a practice or circular to do so.such kind of bad practice or circular may save the personal liabilty of a banks employee when it arises with the bank,but bank it self can not plead it as a valid defence against you is my point.


1 Like


Dear Mr. Kumar and Mr. Prabhakar, thank you once again for your valuable inputs. I am now confident that I am going to let this bank down in consumer court if they don't compensate for what they did with my FD.

I have decided not to give them 10 more days.

I could not sent an RTI application to Citibank because it's a Foreign Bank and doesn't come under RTI Act. I have already contacted their Customer Care, Nodal Officer, Grievance Redressal Team, Head Customer Care etc, I even wrote to their CEO ( and got repliesfrom there Executive Response Unit but till date they have been unable to prove their legal ability lien mark FD.

However I have sent an RTI application to CPIO, RBI after they disposed off my banking ombudsman complaint without properly explaining the reason. I have asked RBI for following information.


I am an Indian citizen and seeking following information under Right to Information Act 2005:

1.       How did RBI banking ombudsman decide that my complaint doesn’t qualify to be put against RBI ombudsman under banking ombudsman scheme clause 8 and 9(3)?

2.       What are RBI directive in regards with Lien marking Fixed Deposit to a 3rd party (other than the bank and the account holder)?

3.       Is it within RBI rules and regulation that a bank can lien mark an FD to a 3rd party (the employer) without authorization from the account holder? Also are they not required to inform the account holder of such lien agreement?

4.       Is it within RBI rules and regulation that the banks may not provide copies of documents related to any such lien marking to the holder of the account on which a lien has been marked (even after several weeks of follow-up by the account holder)?

5.       If answer to question 3 and 4 indicates that the bank violated RBI rules and regulations, then what action will RBI take against the bank and how will RBI insure that I get appropriate compensation?

6.       If answer to question 3 and 4 indicates that the bank violated RBI rules and regulations then what’s the procedure to file a complaint against the bank for the same?



The speed post has already been delivered on May 30, 2011 and I am awaiting a response from RBI.


Thanks and Regards

Kumar Doab (FIN)     07 June 2011

You have mentioned in your posts:

"I even wrote to their CEO ( and got replies from there Executive Response Unit but till date they have been unable to prove their legal ability lien mark FD."

The CEO is above everybody including AVP/VP-Customer Care and after his reply, no more investigation is left and no other conclusive reply can be given and hence bank has no right to ask for another 10 days.

Moreover their CEO must have replied after due diligence and investigation and not while watching a movie.

Even if they are a foreign bank they can not violate law of the land and rights of the Indian Citizen.

Exercise your rights on Branch Head where you had your FD, and make him a party, mark all communications to him also, and communicate that as per publications Citibank has been involved in frauds, with customer's monies (Guragon Episode) and due to mismanagement declared bankruptcy and begged and borrowed from one and all, and since bank is not supplying you any document, and even CEO has not respected your rights, you shall be constrained to appraise your family, friends, acquaintances, colleagues, people of social repute, social and legal forums, institutions of print and electronic media, NGO's, police, courts of law( and ask them to call all involved in their personal and professional capacities), online portals, and may call a press conference, and may send all details to leadings journals, papers, etc at their cost and consequences if within next 3 days all documents( certified under original seal and signature of competent employee) e.g. .....are not supplied to you by registered post. You may handover your letter to local branch head, under receipt, with original seal and signature, and Branch head where you held your FD, Anjana Makkar, CEO, and if they do not yield shoot a legal notice, for lodging criminal and civil suite. The representations in local branch (preferably with person of repute and Citibank customers) shall shake them.



I sent another letter to Citibank today and asked for compensation:

This is with reference to my letter dated May 30, 2011 (copy enclosed) where I requested for documents related to my Fixed Deposit. I received an email (copy enclosed) yesterday June 6, 2011 from S. Lakshmi, Manager - Customer Care. She acknowledged receipt of my letter and informed me that an investigation has been initiated since the receipt of my letter and asked me to wait for 10 more days. I have waited for over 5 months, contacted customer care, nodal officer, grievance redressal team, head customer care, account relationship manager and even executive response unit ( but till date Citibank has been unable to prove it’s legal ability to lien mark my fixed deposit in favor of Patni Computer Systems without my written consent.


I hereby demand for Rs. 50000.00 as compensation for deficiency in service and mental harassment. Citibank can pay the same by crediting my Citibank Savings Account.


Please respond to this letter within 5 working days from the date of receipt. If I don’t get a response within 5 working days I will take this matter to consumer forum and Citibank shall be liable to pay the cost of legal proceedings and efforts along with compensation for deficiency in service and mental harassment.

Kumar Doab (FIN)     19 June 2011

Hope your matter has been resolved to your satisfaction.

Plz post th details for the knowledge and benfit of all.


Not yet, Citibank sent me another email on June 15, 2011:


We wish to inform you that we have initiated investigation to respond to your concerns conclusively and hence, we request you to grant us 4 more working days.


I aksed them to respond within 5 working days or before Monday June 20, 2011 else it's just a matter of time before I file a complaint in Consumer Forum against the bank.


Thank you once again for your valuable inputs and useful advices.


I got a call from Citibank yesterday regarding the issue. The person accepted Citibank's fault for not being able to produce documents supporting the lien. He said that Citibank requires written consent of the account holder for such lien and in my case the documents have somehow been misplaced (He didn't accept that Citibank never had such documents).

He wanted to negotiate on the compensation amount which I refused to do over the phone. He asked for rationale behind coming to this amount and I am not sure how to put this in legal language. First, they illegally lien marked my FD and took 2 weeks to encash it. They never notified me of such lien untill I wanted to encash it. They never produced any documents supporting the lien, instead they have been sending me email and letters, indicating the lien was marked on instructions from my employer and that it doesn't require my written consent. They have not responded to any of my letters within givne time frame, it's been over 5 months and they are still not accepting that they they didn't have documents (they now say it has been misplaced).Please advice how I can justify my demand in legal language.

Kumar Doab (FIN)     24 June 2011

Banks are under obligation to keep the documents safely and keep them secured. The government and RBI has dwelled on the issue and banks keep image of the documents/cheques pertaining to the transactions in accounts of the customers and original documents are safely kept in archives and are allotted a computerized number. Whenever the original document e.g. in case of court order, is to be retrieved the archives computer is able to do so in a matter of seconds, otherwise a scanned image duly certified by the bank is produced. Bank can at the most, claim a charge for the copy if asked by the customer, as per their policy.

Other foreign banks e.g. HDFC, ICICI also follow it. We have recently obtained a copy of the cheque used for the payment of 3 year old electricity bill, from HDFC bank, and the bank did not charge us for the same. We had taken a plea that bank has not   mentioned the cheque number and name of party in the statement of account.

Citibank if has lost the document has to supply all details and reasons how the image and original both are lost, after the complaint was lodged by customer, and bank had made a statement that they are in the possession of the documents and on the strength of record and documents, and proper investigation by one and all including the concerned officials and MD, they stated that lien was created in concurrence to bank’s policy and law of the land. You shall be within your rights to ask for the names, and detail of officials including third party arrangements who have been paid and entrusted to keep the images, and documents, and those who have caused the loss of images and originals. The bank’s communication stating that they are investigating again, and shall issue a conclusive statement, was made to delay the matter and buy more time to initiate round of meetings and seek legal advice, and cook up a story to escape with a mild punishment. They have made blunder by stating that they have lost the documents. They have certainly made this statement as per the legal advice from their legal cell. They have decided to put the matter in “thanda basta”, and delay it and push you to at the most lodge a consumer complaint so that bank can escape with a penalty of a few thousand rupees say Rs.3000/. Have you recorded the conversation? Have you made a note of phone numbers, date and time, name of person pertaining to this phone call?

You can sue and call everyone who has been communicating to you, including, AVP,VP,MD,S.Laxmi, etc in court of law with bank manual.

You must not make them interpret your fight as to squeeze financial gains other then compensation for financial loss, harassment.

You should make it clear that you shall fight for a bigger cause, for yourself and your fellow countrymen, and lodge a criminal complaint,since Citibank as per various publications, has been involved in arm twisting of customers, borrowers, fraud with customers, and has gone bankrupt at the cost of customers, and your recent experience has convinced you that they are habitual offenders who have not and shall not reform with mild financial punishments, and they need to be lodged in a proper reform centre e.g. jail.

You shall be constrained to approach social crusaders like, Baba Ramdev, Anna Hazare, who have lots of data of  illegal practices of foreign companies, NGO’s, Institutions of print and electronic media, police, courts of law, and government regulators and ministries, persons of repute, social and legal forums, at their cost and consequences, if the bank does not supply a written reply with supporting documents, and information, details, records asked by you.

You can arrange to issue a legal notice.


Today again I got a call from Citibank. They offered me Rs 10000.00 as compensation. I didn't agree. They said they will work on it and will get back to me. They also tried to discourage me from going to consumer court by stating that if I file a case against Citibank in consumer court, they will make the employer a party.. which I beleive is ridiculous statement. It was Citibank who was to verify documents before lien marking.

I am now looking for a consulate to draft a legal notice and present this case in Consumer Court on my behalf.

Kumar Doab (FIN)     26 June 2011

It is for sure that the bank is continuing with the round of meetings and legal consultations.

You have already obtained NOC from employer, F&F, experience certificate,your service agreement expired, and

as per your post you have never given any authorisation to bank or your employer to create a lien.

Bank has already stated in writing thru CCE,AVP,VP,MD and thus almost one and everyone in the bank has stated after due investigations that bank has followed the procedure vide which bank can do it, as per their rights , allowed to them by RBI and law of the land. Bank has also made a blunder by expressing their inability ( to be highlighted as as that they are not willing, hence refusing)  in writing, to retreive the documents pretaining to the lien, and thereafter bank has stated after another course of investigation that they have lost the documents.

Now the bank has stated ( it is believed that you have recorded the concersation) that they shall make the employer a party, and thus shall transfer ther onus of supplying the copt of the consent if at all given you to employer, and copy of the employer's instructions to bank to create the lien, and they feel that some document may get produced and accepted by the forum which may exonerate the bank.

In marketing there are three C's : convince, corrupt, confuse.

However you owned the FD and bank can not create any lien without your consent.

The bank may offer you the highest compensation passed by their office and if not acceptable they may opt to face the case in forum.

You can look for better rewards if you make the cuase bigger.

Kumar Doab (FIN)     02 July 2011

Kindly update, the developments or decision. This shall help many who visit the forum.


Citibank contacted me again and offered to add 2-3 thousand more in Rs 10000.00. I refused to accept the same. I have finally contacted a lawyer to present the case in DCDRF on my behalf. I have shared all the relavant document with my lawyer. We will be sending a legal notice to the bank next week and then will file the case in DCDRF. I will post updates here.


Citibank called me again and agreed to pay me compensation for this. I am closing this issue now.

After all legal meetings and advices, they must have realized that they can't get away with this in a court of law.

Thank you all for your suggestions and advices in this regard.

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