The Banking Mohtasib Pakistan has directed Muslim Commercial Bank Limited (MCB) to credit PKR 3.05 million to a complainant’s account after finding that a branch manager unlawfully withdrew and misappropriated customer funds.
According to the Ombudsman’s decision, bank records revealed that the accused branch manager, identified as Mr. Saeed Arif, was in possession of multiple customer cheques and used them to make fraudulent withdrawals. The findings state that he submitted fake Term Deposit applications bearing his own signature, affixed branch transfer stamps, and issued cheques purportedly on behalf of customers instead of actually placing term deposits.
The ruling further noted that funds received through instruments from other banks were credited to an account belonging to the manager’s nephew, Mr. Muneeb Nasir, rather than the rightful beneficiary. It was observed that the branch manager operated his nephew’s account using VDCs and cheques. The decision also records that the same official is subject to an FIR lodged at another branch and that certain bank staff were dismissed for violations of the bank’s code of conduct.
Characterizing the total amount unlawfully taken in the matter as PKR 3.05 million, the Banking Mohtasib exercised powers under Section 82-D of the Banking Companies Ordinance, 1962, and Section 9 of the Federal Ombudsman Institutional Reform Act, 2013, accepted the complaint and ordered MCB to credit the complainant’s account with the full amount along with any applicable service charges. The bank has also been directed to report compliance to the office of the Banking Mohtasib.
The decision reiterated the established legal principle that an employer is vicariously liable for fraud or wrongdoing committed by employees in the course of their employment. MCB has been instructed to comply and submit a compliance report; the bank did not issue an immediate public comment in the Ombudsman’s published order.
