India, May 4 -- Reinforcing its stance in similar SIM-swap fraud case, the Bombay high court has directed Bank of Baroda to refund Rs.1.24 crore to PNP Polytex Pvt Ltd, a Mumbai-based firm that lost funds in January 2020, holding that the customer had "zero liability" as the fraud was carried out by third parties and reported without delay.

The order came from a bench of Justices Bharati Dangre and Manjusha Deshpande on Tuesday while hearing a plea by the firm. The bench noted that under the RBI's July 6, 2017 circular on unauthorised electronic banking transactions, customers are entitled to zero liability if they report such fraud within three days.

The firm, engaged in import and trade, approached the court after losing Rs.1.24 crore...