The Andhra Pradesh High Court has slammed State Bank of India for withholding a woman's inheritance for over two decades, ruling that the bank cannot demand a probate order where not legally required.

  • AP High Court directs SBI to release FCNR deposits held for 23 years.
  • Court rules that probate of a Will is not mandatory in Andhra Pradesh.
  • Parliament abolished the nationwide probate requirement in 2025.
  • The bank failed to show any competing claims despite the long delay.

In a significant victory for consumer rights and inheritance law, the Andhra Pradesh High Court has directed the State Bank of India (SBI) to immediately release the share of a woman in her late NRI brother's Foreign Currency Non-Resident (FCNR) deposits and other investments. The assets had been withheld by the bank for a staggering 23 years following the death of the executor in 2003.

The case, presided over by Justice Ravi Cheemalapati, centered on a Will executed in 1995. The deceased NRI had bequeathed two-thirds of his assets to his son and the remaining one-third to be divided equally among his four sisters. While one sister successfully obtained a succession certificate and received her share of ₹19 lakh in 2007, the bank refused to release funds to the petitioner, Sekharamantri Prameela, and her other sisters.

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SBI's primary defense rested on the demand for a probate order—a court validation of the Will. However, the court dismissed this argument, noting that probate was never mandatory in Andhra Pradesh. Furthermore, the court highlighted a critical legislative shift, stating that the Indian Parliament had abolished the probate requirement nationwide in 2025, rendering the bank's insistence obsolete.

Why This Matters

BozokMedia analysis shows that this ruling exposes a systemic rigidity within public sector banks, where bureaucratic adherence to outdated documentation often overrides clear legal mandates. By forcing a citizen to navigate consumer forums and the banking ombudsman before finally reaching the High Court, the bank demonstrated a failure in its fiduciary duty to the legal heirs.

"The refusal of a financial institution to honor a valid Will, especially when other heirs have already been paid, constitutes a gross violation of fundamental property rights."

The court noted that the bank could not point to any adverse claims made by the wife or son of the executor in over two decades. The petitioner's counsel, Advocate Sarang Afzulpurkar, argued that the bank's actions were in utter violation of the fundamental rights guaranteed under the Constitution of India.

Given the petitioner's advanced age and the absence of any active dispute over the Will, the court ordered SBI to release the entitled share upon the submission of an indemnity bond.

Did You Know?: Probate is a legal process that proves a will is valid. While common in some jurisdictions, India's legal landscape has shifted to make asset transfer simpler for heirs.

Frequently Asked Questions

1. Is probate mandatory for all Wills in India?
No, as per the recent 2025 Parliamentary change and specific state laws like those in Andhra Pradesh, probate is not mandatory for the release of assets in all cases.

p>2. What is an FCNR deposit?
Foreign Currency Non-Resident (FCNR) accounts are term deposits held in foreign currency, specifically designed for Non-Resident Indians (NRIs).