Dehradun. A delegation of depositors from an urban cooperative bank in Dehradun has met Uttarakhand CM Dhami and sought a high-level investigation into alleged financial irregularities at the institution.
The depositors claim that regulatory restrictions on the bank’s operations have affected access to nearly ₹124 crore deposited by customers. Taking note of the complaint, the chief minister has directed officials to initiate immediate action and begin the process for a high-level inquiry.
A delegation of around 50 members met Dhami at his official residence. It included Social Welfare Minister Khajan Das, authorised representatives of the depositors and affected account holders. The delegation briefed the chief minister about the bank’s financial condition and the difficulties being faced by depositors.
The depositors alleged that customers had placed their lifetime savings with the bank believing it to be a safe and regulated financial institution. They said that following regulatory restrictions on its operations, a large number of account holders have been unable to access or withdraw their deposits as they normally would. In February 2026, restrictions imposed by the Reserve Bank of India reportedly included curbs on the bank’s operations and withdrawals by depositors.
The delegation sought an investigation into the matter, alleging that the crisis was not simply the result of financial weakness but could be linked to alleged irregularities that had continued for several years. Depositors demanded a comprehensive examination of the role of the bank’s chairman, board of directors, management and employees. The allegations have yet to be independently established, and responsibility for any wrongdoing would have to be determined on the basis of the findings of the investigation.
Depositors also alleged that one family had retained influence over the bank’s chairperson’s position since 1998 and claimed that leadership later passed within the same family. The delegation sought an examination of alleged family links and influence within the bank’s board of directors. According to the depositors, the inquiry should determine whether there were any conflicts of interest or violations of rules in board appointments and the functioning of the bank.
The delegation also raised questions about the bank’s audits over the years. Depositors claimed that despite audits conducted by auditors appointed by the Reserve Bank of India between 2012-13 and 2025-26, the alleged irregularities remained undetected for a prolonged period. They sought an investigation into why warning signs related to the bank’s deteriorating financial condition were allegedly not identified in time.
Questions were also raised over staff recruitment and salaries. Depositors alleged that prescribed eligibility standards were overlooked while appointing certain employees and that some were given comparatively high salaries. They have sought scrutiny of the recruitment process, the eligibility of the appointees and any alleged links between them and the bank’s management.
Earlier, concerns had also been raised over the bank’s financial condition, including non-performing assets and loans that had reportedly become difficult to recover. According to available reports, deposits exceeding ₹124 crore belonging to around 9,000 account holders were affected. Questions were also raised over the bank’s loans and financial provisions.
Following the depositors’ complaint, Dhami directed the Inspector General of Police of the Garhwal Range and the Dehradun Senior Superintendent of Police to initiate immediate action. Officials said the process for a high-level inquiry would be initiated to examine the allegations and review the facts, financial records and role of the bank’s management.
A key aspect of the investigation will be to determine the actual reasons behind the deterioration of the bank’s financial condition and whether there were any violations of regulations or criminal acts at any level. Officials said further action would be decided on the basis of the investigation’s findings.
Depositors have also sought steps to restore access to their funds and safeguard their financial interests. The investigation is expected to examine the bank’s financial records, regulatory compliance, management decisions and other circumstances surrounding the restrictions before determining whether any further legal or administrative action is warranted.
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