Due diligence failure facilitated fraud

In a case of fraud, the National Commission found that a postal department had handed over a cheque meant for a couple to another person without an authorisation letter

Pritam Singh Narang and his wife Mahendra Kaur had placed a total amount of Rs 11 lakh through four investments made in the Postal Department's Saving Scheme during the period May 19, 2003 to June 10, 2003. When the deposits matured after three years in 2006, the returns were reinvested for another period of three years through four deposits totalling Rs 13.45 lakh.

When Pritam Singh approached the post office, he learnt that all the passbooks were forged and the investments had been repaid in 2007. His inquiries revealed the money had been siphoned off by issuing cheques to a third