A multi-crore financial fraud involving fake fixed deposits and unclosed loans has been unearthed at HDFC Bank’s Shopian branch in South Kashmir. Two former branch managers, identified as Irfan Zargar and Aadil Ayub, have been booked after the bank’s internal audit revealed large-scale irregularities dating back to 2020.
The revelations came after the bank’s Branch Operations Transformation and Control (BOTC) wing flagged discrepancies in June 2025. According to officials, a significant shortfall was detected between physical cash and electronic records in a high-value customer account.
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Discrepancies in Accounts and Fake Deposit Certificates
One of the key cases involved businessman Asim Iqbal Wani, Director of Freshman, a CA store in Pulwama. Wani’s loan account continued to reflect an outstanding balance of ₹1.35 crore despite the issuance of a No Objection Certificate (NOC) from the bank confirming full repayment. The audit revealed the loan account had not been officially closed, allowing the fraudulent entries to persist.
In another case, an account holder discovered that a ₹20 lakh fixed deposit (FD) certificate issued by the branch manager did not exist in the bank’s system. The customer, who had trusted the investment for years, was left without any record of his deposit.
As the news spread, more customers came forward with complaints, citing unexplained debits and missing funds. The bank has confirmed that the fraudulent activities appear to have continued for at least five years.
Legal Action and Wider Investigation
Following the audit, HDFC Bank’s South Kashmir cluster head lodged an FIR (168/2025) at Shopian Police Station. The charges include criminal breach of trust, cheating, forgery, and misuse of electronic signatures under relevant sections of the Bharatiya Nyaya Sanhita and the Information Technology Act.
Authorities have acknowledged the potential “inter-district ramifications” of the scam and proposed transferring the case to the Economic Offences Wing of the Jammu and Kashmir Police for deeper investigation.
The bank has suspended one of the accused managers and refrained from public comment, citing the ongoing police probe. The case has sparked concerns over internal control mechanisms at financial institutions, especially in smaller branches in rural and semi-urban regions.
