A major financial fraud has surfaced at the Adarsh Co-operative Urban Bank in Telangana’s Medak district, where a bank manager has been accused of cheating the institution of nearly ₹1.80 crore through fake gold loans, fraudulent accounts and alleged diversion of cash deposits. Police said the accused manager, identified as Anil, is absconding, while his wife and a close associate have been arrested.
Fake Accounts Used to Route Transactions
According to police, Anil allegedly misused his official position to open 16 bank accounts using the Aadhaar and PAN details of his wife, friends and acquaintances. Investigators suspect these accounts were used to divert and route illegal transactions linked to the fraud.
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Preliminary findings suggest that the accused exploited his access within the bank to manipulate records and conceal suspicious transactions. Special teams have been formed to trace him, and searches are being conducted at possible hideouts.
Police have arrested the accused’s wife and a close associate identified as Subramanyam. Both have been produced before a court and remanded to judicial custody. Officials said their role in the financial transactions is still under investigation.
Gold Loan System Allegedly Manipulated
Investigators said the accused manipulated the gold loan process by pledging small 1-gram ornaments while showing them as high-value gold jewellery. Through this method, he allegedly secured loans worth around ₹1.49 crore.
Officials said the actual value of the pledged gold was far lower than the loan amount sanctioned, indicating deliberate manipulation of banking records. The irregularities were detected after bank officials noticed discrepancies in transaction records and initiated an internal audit.
The probe also found that nearly ₹31.35 lakh deposited by customers through ATMs was not properly credited to accounts and was allegedly misused for personal benefit. This has raised concerns over internal monitoring failures within the bank.
Audit Finds Wider Irregularities
The total suspected fraud is estimated to exceed ₹1.80 crore. Bank management said several irregularities were uncovered during internal audits and digital record verification. All suspicious accounts have now been frozen, and a detailed transaction review is underway.
Investigators have also found that Anil had previously been involved in another fraud case. Police believe he was addicted to online betting and had suffered significant financial losses, which may have pushed him to commit the alleged scam.
Officials indicated that the investigation may expand further as more financial irregularities could come to light. The case has again raised concerns over internal controls, audit systems and insider fraud risks in cooperative banking institutions.
