UP Cooperative Bank Branch in Gonda Hit by Rs 21.47 Crore Fraud
A significant financial scandal has rocked the Gonda branch of the UP State Cooperative Bank. Authorities have uncovered a fraud scheme totaling Rs 21.47 crore. Police have filed an FIR against 16 people, including former branch managers.
Audit Exposes Widespread Irregularities
The case came to light on Wednesday. Bhuvan Chandra Sati, the assistant general manager of the Gonda branch, lodged a formal complaint. This action followed a detailed audit conducted by a chartered accountant empanelled with the Reserve Bank of India.
The audit report revealed extensive violations in loan sanctioning and disbursement processes. These activities blatantly ignored banking norms set by the RBI and NABARD.
How the Fraud Was Executed
Investigators say the fraud occurred under the leadership of three former branch managers:
- Pawan Kumar Pal served from December 2021 to May 2023 and again from July 2024 to June 2025.
- Ajay Kumar held the position from May 2023 to July 2024.
- Sushil Kumar Gautam was also involved during this period.
The accused allegedly created a criminal network. This syndicate included bank employees and certain account holders. Together, they sanctioned loans illegally without checking essential documents.
Required papers like income certificates, collateral valuation reports, and eligibility records were completely overlooked. In many instances, loans were approved using forged and fabricated documents.
Massive Fund Diversion Uncovered
The audit found that at least Rs 46.13 lakh was siphoned off through unauthorized debits. Money was taken from five internal bank accounts and transferred to private accounts before being withdrawn.
Additionally, a staggering Rs 21.01 crore belonging to depositors was allegedly diverted. These funds were moved through various banking channels. This brings the total misappropriated amount to Rs 21.47 crore.
Police Take Swift Action
Gonda SP Vineet Jaiswal confirmed that police have registered the case. The FIR includes charges under multiple sections of the law. These cover cheating, criminal breach of trust, forgery, criminal conspiracy, abuse of official position, and misappropriation of funds.
The investigation is now actively pursuing all 16 named individuals. Authorities aim to recover the diverted funds and ensure accountability for this large-scale banking fraud.
