Hapur (Uttar Pradesh): In a major financial irregularity case from Hapur in Uttar Pradesh, allegations of large-scale misappropriation of compensation funds worth ₹8 crore have surfaced, exposing what investigators describe as a deep-rooted cooperative banking fraud network.
The case originated from a complaint filed by a resident of Gautam Buddh Nagar, who alleged that his compensation amount received against agricultural land acquisition was deposited in a branch of a cooperative bank, but was later illegally diverted by bank officials and associates.
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Investigations suggest that the accused officials, including the then bank manager, allegedly conspired with other individuals to misuse depositor funds and channel them into unauthorized financial activities, including the purchase of large tracts of land.
Land Purchases and Disputed Transactions Under Probe
According to details emerging from the probe, the bank is alleged to have invested depositor money in acquiring nearly 19.59 hectares of land in Hapur’s Tatarpur village, which later became part of disputed transactions after the institution faced financial instability.
Officials further noted that although the Reserve Bank of India had cancelled the bank’s licence in 2017, irregular transactions and alleged asset transfers reportedly continued even after regulatory action had been taken.
The cooperative department had issued attachment orders for properties in 2020 and 2021, but the accused are said to have challenged these orders in court, which were later dismissed in 2022.
Despite these legal developments, allegations suggest that attempts were made to sell and transfer seized properties in 2025 through intermediary entities, raising concerns of continued fraud even under legal scrutiny.
FIR Names 35 Accused After Court Order
In total, 35 individuals, including former bank officials, employees, and associated persons, have been named in the FIR registered following a court order, and a detailed investigation is underway.
Police and financial investigators are examining bank records, property documents, and fund transfer trails to determine the exact flow of money and identify beneficiaries involved in the alleged fraud. The complaint also points toward possible collusion between internal bank staff and external beneficiaries, which may have enabled systematic diversion of funds over a prolonged period without immediate detection.
Officials are also reviewing whether similar irregularities occurred in other branches linked to the institution, as investigators expand the scope of the probe beyond the immediate allegations reported in Hapur.
Fund Trails and Intermediaries Under Scrutiny
Legal experts suggest that if charges are proven, the case could lead to significant criminal liability for those involved, including potential recovery proceedings and attachment of personal assets of the accused.
Weeks after the court’s intervention, the investigation continues with forensic examination of financial documents, digital records, and property registries.
