Is this how you deal with customers? Calcutta HC to HDFC bank over blocking of Abhishek Banerjee’s account

The Calcutta High Court on Thursday criticised HDFC bank for the manner in which Trinamool Congress (TMC) leader Abhishek Banerjee’s bank account was blocked.

Banerjee’s counsel, Senior Advocate Ayan Bhattacharya, told the Court that the TMC leader's HDFC bank account as well as his credit and debit cards, were blocked on the same day that the Supreme Court permitted him to travel abroad for eye treatment.

A communication from the bank said that the account was being temporarily suspended pending an additional due diligence exercise and that Banerjee had to visit the bank to resolve the issue, Bhattacharya added.

In response to the Court’s queries, HDFC’s counsel said that certain additional KYC (Know Your Customer) related documents were required from Banerjee.

Justice Krishna Rao, however, questioned why the bank had insisted on Banerjee visiting its branch merely for KYC verification.  

“Your bank is not on e-KYC? Your bank is very keen to see the person come personally. If the bank is interested to see the face of the client, then I will tell - if photograph will suffice. Nowadays, even the government offices are doing everything online. As per your letter, it seems you are very much interested to see the face of the person… This is the way the bank is doing the business with the customers? Tell me, when will you resolve this? Whatever the documents you want, inform the advocate and he will submit,” the judge said. 

Senior Advocate Bhattacharya pointed out that Banerjee’s KYC re-verification is only due in December 2026.

In response, HDFC’s counsel explained that the present need for KYC arose after Banerjee was linked to certain cases initiated by the Enforcement Directorate (ED). 

“We are already in the process of resolving (the matter)… Issue is whether the writ is at all maintainable in respect of HDFC bank…Issue is that, milord, this petitioner’s name, mobile number and PAN number are already linked with other cases already initiated by the ED. It’s a system verification, it got blocked,” she said. 

The judge observed that this aspect of the matter was not disclosed when the case was briefly taken up yesterday and even the communications issued by the bank to Banerjee were silent about the same.

“That is not the case you made out by your two communications (earlier) … Can you change your stance?” asked Justice Rao.

HDFC’s counsel added that Banerjee’s personal presence is required since his photograph may also have to be taken as part of the additional KYC process. 

“Tell your bank manager to appear in person. I will take his photo first. You cannot change the stance, madam! First of all, you took time yesterday. And now you have changed your stand,” the judge remarked.

The bank’s counsel eventually informed the Court that Banerjee need not visit its branch for the KYC exercise. However, it cannot be done online since his account is temporarily blocked, she added. Instead, she suggested that the bank’s official can visit Banerjee’s residence to complete the KYC formalities. 

The Court recorded this submission. In an interim order passed this afternoon, the Court directed Banerjee to submit all KYC documents requested by the bank during the course of today, and added that the bank’s official will visit his residence to complete the process instead of TMC leader having to visit the bank. 

Banerjee's counsel told the Court that this can be done today itself. 

The Court recorded this as well, and directed the bank to inform Banerjee of the time at which its representative will visit the TMC leader’s house to complete the additional KYC formalities. 

"Petitioner shall remain present in the house when bank officials visit. Let matter appear on Monday (August 24), at the top,” the Court added.  

Senior Advocate Bhattacharya also urged the Court to quash HDFC's earlier communications altogether, terming them high-handed actions.

"This (account block) should not have happened at all... Their regulation says before blockage or need for KYC, they have to notify me," Bhattacharya said.

He added that Banerjee's credit facilities should also be re-opened once the KYC formalities are complete.

Advocate Shounak Mondal assisted Senior Advocate Bhattacharya.

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