The Central Bureau of Investigation (CBI) has uncovered a major banking fraud involving a former Bank of Baroda branch manager accused of siphoning off over ₹8 crore through fraudulent accounts, illicit fund transfers, and unauthorised credit enhancements. Raids in Uttar Pradesh and Gujarat have yielded evidence of systemic manipulation and personal enrichment.
The Masquerade in Moradabad: How a Manager Allegedly Betrayed the System
The CBI has registered a case against a former Bank of Baroda branch head, based on allegations of cheating, criminal misconduct, and gross violation of banking protocols during his tenure at two Moradabad branches, Maswasi Town (2021–2023) and Rahmatganj (Oct 2023–Feb 2024).
In what investigators describe as a “deeply premeditated financial scheme,” the accused:
- Bypassed dual custody rules to access branch assets
- Opened bank accounts without applications or KYC
- Created and reversed unauthorised enhancements in loan limits
- Allegedly forged transactions using cheque instruments not in his name
Funds from these operations, according to the CBI, were systematically funnelled into accounts controlled by the accused and his wife. Investigators allege that this deception was sustained over two years under the radar of branch-level audits.
The Money Trail: Over ₹8 Crore in Suspicious Transactions
CBI officials have identified at least ₹3 crore being credited directly into the accused’s account, followed by rapid cash withdrawals and transfers to other individuals. A parallel investigation into his wife’s bank records uncovered a further ₹4.91 crore from various sources, including advance loan accounts and unauthorised credits.
Key irregularities highlighted by the agency include:
- Non-performing accounts created without borrower requests
- Lack of appraisal notes or security documentation
- Repeated reversals of loan enhancements, designed to mask misuse
- Unrecorded transfers and withdrawals, often in cash
A senior CBI official stated that these transactions clearly exceeded the known income profile of the accused and his family. He also added that the funds were moved both digitally and through cash, with possible money laundering implications.
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The Raids, the Recovery, and the Road Ahead
CBI teams conducted simultaneous searches in Meerut (U.P.) and Bharuch (Gujarat), recovering incriminating documents, transaction logs, and digital evidence that allegedly corroborate the embezzlement scheme. Investigators say the fraud points to deep vulnerabilities in internal controls, especially at the branch level in rural and semi-urban areas.
The CBI has not ruled out the involvement of other public servants or internal collusion, and sources say bank officials who may have turned a blind eye or failed to report discrepancies could soon be under the scanner.