Background
Around the year 1995 and 1996, the appellants had purchased Kisan Vikas Patras with the combined face value on maturity of ₹32.60 lakh. However, the KVPs were encashable at the post offices before the maturity date at a lower value after the stipulated/lock-in period of holding.
In February 2000, the appellants had approached the postmaster, Head Post Office Chowk, Lucknow, with the request to transfer the KVPs to the Chowk Post Office, Lucknow. The officer informed the appellant that the transfer process would be time-consuming and cumbersome and would require several visits to the post office.
The officer recommended the appellant take the services of Rukhsana, an agent appointed by the State of Uttar Pradesh and associated with the post office.
On March 3, 2000, as per Rukhsana’s instructions, the appellants signed original KVPs on the backside and handed over the same along with Monthly Income Scheme passbook to her, against which she provided a document confirming receipt of the KVPs.
In June 2000, after learning that Rukhsana had cheated several investors and had been arrested by the police, the appellants made several enquiries and found that the KVPs were already cashed. Moreover, it was revealed in the inquiry that the sub-postmaster of the post office was also hand in glove with Rukhsana.
Source: Barandbench
