FIR Filed Against Bank Employees in Lucknow Over Rs 58 Crore Forest Corporation Fraud
Police in Lucknow have registered a First Information Report against unidentified employees of a nationalised bank's Sadar branch. The FIR alleges these employees diverted a massive sum of Rs 58 crore belonging to the Uttar Pradesh Forest Corporation. They reportedly accomplished this by issuing a fake fixed deposit receipt.
Complaint Details and Investigation
The FIR came to light on Wednesday after being registered late Tuesday. Arvind Kumar Singh, the managing director of the Uttar Pradesh Forest Corporation, filed the complaint at the Ghazipur police station in Indiranagar.
In his detailed written complaint, Singh explained the background. The Forest Corporation's funds had previously been invested with the Bank of Maharashtra. When these investments matured, the department decided to reinvest the amount through a transparent bidding process.
The Bidding Process and Fund Transfer
On December 29, 2025, the corporation invited bids via email from various banks for reinvesting Rs 64,82,21,365. A duly constituted committee opened the tenders on December 30. According to the comparative statement, the nationalised bank's Sadar branch offered the highest callable interest rate of 6.73%. This led to their selection.
The entire amount was transferred to the bank's intermediary parking account on December 31, 2025, for creating a fixed deposit. However, since the transfer occurred after banking hours, the bank revised the interest rate to 6.70% effective January 1, 2026. They cited new annual rates as the reason. Considering revenue implications, the Forest Corporation agreed to the revised rate.
The Fraud Discovery
According to the FIR, a bank official provided the original receipt of the fixed deposit when the corporation's finance officer requested it over the phone on the same day. The situation took a suspicious turn on January 6.
The bank wrote to all banks where it held fixed deposits, seeking confirmation about the accounts. However, the said bank did not confirm the deposit. Instead, on January 7, 2026, it sent a letter to the corporation. This letter mentioned a savings account in the name of the Uttar Pradesh Forest Corporation and one fixed deposit account worth only Rs 6.82 crore.
There was no mention whatsoever about the remaining Rs 58 crore.
Police Action and Statements
The Forest Corporation subsequently warned the bank of legal action and approached the police. ACP Anindya Vikram Singh of Ghazipur police station confirmed the developments.
He stated that authorities have initiated a detailed investigation to trace the movement of funds. Police will also work to identify those responsible for the alleged fraud. Further action will follow based on documentary evidence and bank records, the ACP added.
This case highlights significant concerns about financial security and procedural integrity within banking operations involving government funds.
