ED Attaches Assets Worth Over Rs 1 Crore in Bank of India Embezzlement Case
In a significant development, the Enforcement Directorate (ED) has attached properties collectively valued at more than Rs 1 crore. This action is linked to a major fraud case involving the embezzlement of Rs 16.1 crore from 230 customer accounts at the Bank of India's Bandra branch in Mumbai. The primary accused in this case is Hitesh Kumar Singla, a former staffer of the bank.
Details of the Attached Properties
The attached assets include a plot of land worth approximately Rs 11 lakh, along with various bank balances held in mule accounts. These mule accounts are reportedly connected to betting applications, where Singla is alleged to have lost substantial portions of the defrauded funds. The ED's investigation revealed that Singla utilized these accounts to divert the illicit money, which was later squandered in futures and options trading as well as online gambling activities.
Arrest and Judicial Custody
Hitesh Kumar Singla was arrested by the ED in September last year at Ahmedabad railway station following a dramatic chase. Since his arrest, he has been lodged at Arthur Road jail under judicial custody. The arrest marked a crucial step in the ongoing probe into the financial irregularities at the Bank of India branch.
Modus Operandi of the Fraud
According to ED officials, Singla executed the fraud over an extended period by fraudulently closing customers' term deposits, public provident funds, senior citizen savings scheme accounts, and savings and current accounts without any authorisation. He then transferred the embezzled money to his personal savings accounts and the aforementioned mule accounts. This systematic diversion of funds highlights the sophisticated nature of the scam, which exploited vulnerabilities in the bank's internal processes.
Broader Implications and Investigation
The case underscores the challenges faced by financial institutions in preventing internal fraud and the role of enforcement agencies in tackling such crimes. The ED's attachment of assets is part of efforts to recover the defrauded amounts and ensure accountability. As the investigation continues, further details may emerge regarding the extent of the fraud and any potential accomplices involved in the scheme.
