How Justdial cheats customers by using Electronic Clearance Service (ECS)

In May 2016, Sanjeev Goel, managing partner of Pure Energy Academy in Belapur, Navi Mumbai, signed a contract with Justdial for business promotion. June onwards, Justdial started sucking money from Pure Energy's bank account by using a fraudulent Electronic Clearance Service (ECS) mandate. 

Justdial -- India's no. 1 bloodsuckers.

 Pure Energy Academy's contract with Justdial was for payment of Rs 1040/- per month, for a period of one year. See the terms of contract below.

Two cheques were issued towards the first two monthly payments. Justdial activated the contract on 3^rd June after depositing both the cheques one day earlier. Justdial's backroom boys evidently forged a ECS/NACH mandate form enabling them to charge upto Rs 1040/- as many times in a month as they wished. Justdial could milk limitless money from Pure Energy's bank account by presenting the ECS/NACH mandate for the next 14 years! Also, the forged ECS mandate was made out to be irrevocable!

See the forged ECS/NACH mandate below.

Take a close look at this fishy document. All the options are pre-tick-marked and cancelled in the printed form itself. They are not tickmarked or cancelled by hand, the form is printed that way! Even the supposed termination date of the contract – 31/03./2030 – is printed, and only the starting date is entered by hand. The frequency options i.e. Monthly, quarterly, half-yearly and yearly, are all pre-cancelled in the printed form, and "As and when presented" is pre-tickmarked. The debit type option of "Maximum amount" is also pre-selected in the printed stationery. Also notice that something has been pasted on top of the form, partly covering the words "Client" and "Reference" on the left-hand-side. Like a cheque, the ECS mandate is a negotiable instrument, so how can it have a pasted-on layer? Aren't negotiable instruments rejected by banks if there is pasting, over-writing etc.? This ECS mandate defies commonsense!

Using this ECS mandate, Justdial started guzzling money from Pure Energy Academy's bank account. Justdial encashed both the cheques on 3^rd June, and debited Rs 1040/- on 30^th June by ECS – three debits in the first month of the contract. Despite being told to terminate the contract, Justdial debited Rs 1040/- in July, August and September, plus Rs 110/- twice in September. Within four months, Justdial took payment for more than six months. 
 

See Statement of Account below.

If and only if the police register an FIR against Justdial, HDFC Bank will consider reversing the debits. But what if the police does not register FIR? Suppose the police takes the stand that this is a banking issue, and therefore, they have no understanding of it, and therefore, Sanjeev should complain to appropriate authorities in the banking domain? Then Sanjeev will be left with no remedies, and Justdial will get away scotfree.

Read the full article: Is HDFC Bank letting Justdial steal your money?

ISSUED IN PUBLIC INTEREST BY

Krishnaraj Rao

9821488114

krish.kkphoto@gmail.com

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