IPO allotment case: Woman wins compensation

Anuradha Joshi, an Ahmedabad resident, recently won partial compensation in a case related to her application for shares in the Adani Wilmar IPO. In February 2022, Bank of Baroda entered only half the number of shares (65 instead of 130) that Mrs Joshi had applied for, leading to a loss of Rs 42,142 for her. She also claimed that the bank subjected her to physical and mental harassment, but her initial appeal was dismissed.

Mrs Joshi then filed a complaint with the Gujarat State Consumer Disputes Redressal Commission, where she won the case, but was only partially awarded compensation. Her counsel argued that the bank's error wasn't an ordinary or significant mistake, citing a previous case, ICICI Bank vs Santosh Sardana (2021). The bank argued that share trading is a commercial activity and Mrs Joshi is not a "consumer" within the meaning of the Consumer Protection Act.

They also claimed that Mrs Joshi failed to produce proof of payment and documentary evidence establishing she was entitled to allotment of 130 shares.

However, the Gujarat State Consumer Disputes Redressal Commission ruled in her favor, partially allowing her appeal. The commission held that Mrs Joshi qualified as a "consumer" because she is a beneficiary of banking services and the absence of direct payment by her to the bank cannot be treated as conclusive to deny her the right to complain.

The commission also acknowledged that the error was not an ordinary or significant mistake. The compensation awarded to Mrs Joshi includes Rs 20,000 for the bank's deficiency in service, Rs 10,000 for mental agony and harassment, and Rs 7,000 towards the costs of the original and present appeal, totaling Rs 37,000.