Following a directive from the local court, the police in Gonda have registered a major fraud and embezzlement case against 69 individuals, including senior bank officials and employees. The case involves an alleged embezzlement of Rs 3 crore 60 lakh 16 thousand at the Indian Bank Employees Credit Co-operative Society Limited. According to investigators, the accused personnel allegedly abused their official positions over a multi-decade period to distribute fraudulent loans and systematically manipulate financial records.
Extensive Loan Fraud Spanned Over Two Decades
The structural irregularities came to light following a formal petition filed by Ravindra Kumar Srivastava, the current Secretary of the co-operative society. The case names 69 office-bearers and staff members, explicitly including the then-secretary, senior managers, managers, the head cashier, and the chief cashier, alongside numerous other employees. The accused were stationed at the main Gonda branch of the then-Allahabad Bank between 1997 and 2020. During this extensive tenure, they allegedly engaged in forging financial documents, dispersing fake loans, and opening unauthorized accounts under fictitious names to illegally siphon off the co-operative society’s corpus funds.
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Violations of Repayment Agreements Elevate Financial Loss
According to the complainant, while the principal embezzled amount stands at Rs 3.60 crore, the accumulation of accrued interest pushes the total financial liability to over Rs 4 crore 90 lakh 8 thousand 373. The petition further states that when the initial financial manipulation was detected by the society, a formal written agreement was executed with the accused individuals for the complete return of the misappropriated funds. However, the accused subsequently violated the terms and conditions of the repayment contract, and no money was returned to the organization.
Judicial Intervention Prompts Formal Investigation
Prior to moving the court, Secretary Srivastava had lodged formal complaints through the Integrated Grievance Redressal System (IGRS) and approached higher administrative authorities. A total lack of regulatory action from these departments eventually forced the society to seek judicial intervention to initiate criminal proceedings. Following the explicit court order, the Kotwali Nagar police registered a formal case under relevant sections governing fraud and financial breach. Town Inspector Bindeshwari Mani Tripathi confirmed that the statutory investigation has officially commenced, and the police have summoned the bank’s official registers, loan files, and past audit reports for thorough forensic examination.
