An alleged ₹8.56 crore fraud at UP Gramin Bank’s Budhana branch has prompted farmer protests and a police investigation.
Customers have accused bank employees of making unauthorised withdrawals and transferring money from their accounts without consent. Four employees have been named in a police complaint, while affected farmers have reportedly protested outside the branch for 14 days, demanding the return of their savings.
How Was the Alleged Fraud Discovered?
The matter initially came to light when 25 customers complained to bank officials about suspicious withdrawals involving approximately ₹1 crore.
A preliminary examination by the bank’s regional office reportedly identified further irregularities, prompting a wider investigation. Subsequent scrutiny indicated that alleged fraudulent transactions could involve approximately ₹8.56 crore.
Investigators suspect that money was withdrawn from customers’ accounts without valid authorisation and transferred to third-party accounts. The suspected irregularities have raised concerns among depositors, particularly farmers who rely on their savings for agricultural expenses and household needs.
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Which Bank Employees Have Been Named?
Navdeep Singh, a senior manager at the bank’s regional office, filed a complaint at Budhana police station against four employees in connection with the suspected transactions. Those named are former branch manager Rupak Rana, assistant managers Neha Dilwalia and Vikas Kumar, and office assistant Gaurav Agarwal. The complaint reportedly followed a review conducted on September 18, with a detailed investigation beginning on September 19.
Investigators examined customer transactions, account records, vouchers, mandates, authorisations, system entries and audit trails. These records reportedly indicated transfers to other accounts without proper customer approval.
The allegations remain under investigation, and being named in the complaint does not establish criminal liability.
What Action Has Been Taken?
A recommendation has reportedly been made to suspend two employees, including the former branch manager. Other employees are also under scrutiny. The investigation is examining the extent of the suspected fraud, how the transactions were processed and who may have been responsible.
Why Are Farmers Demanding Government Intervention?
District Cooperative Bank Chairman Thakur Ramnath Singh met Uttar Pradesh Cooperation Minister J. P. S. Rathore on Sunday and raised concerns about the alleged fraud and its impact on depositors. Singh reportedly requested a high-level investigation, recovery of customers’ money and strict legal action against those found responsible. Meanwhile, farmers have continued demanding refunds and accountability from the bank.
The420 Insight: The case highlights concerns about customer authorisation, internal banking controls and the protection of depositors’ savings. The investigation’s findings will be central to establishing responsibility and determining whether the affected customers can recover their money.
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