The Economic Offences Wing (EOW) of Chhattisgarh has filed a 2,000-page chargesheet in one of the most brazen banking frauds to hit the Indian Overseas Bank (IOB). Four officials of the bank’s Rajim branch stand accused of orchestrating a ₹1.65 crore embezzlement through fake jewel loan accounts, exposing troubling gaps in banking oversight and digital safeguards, leaving India’s banking system grappling with another scandal.
The Anatomy of the Scam: Fake Loans, Real Losses
Between December 2022 and February 2023, four IOB employees: then-Branch Manager Sunil Kumar, Assistant Manager Ankita Panigrahi, and clerks Yogesh Patel and Kheman Lal Kanwar, allegedly colluded to siphon off over ₹1.65 crore.
Investigators say the group fraudulently created 17 fake jewel loan accounts in the names of unsuspecting customers. No loan forms, vouchers, or genuine collateral were submitted. Instead, the accused manipulated the bank’s computerized system, entered fictitious data, and diverted the funds.
An EOW officer stated that the victims didn’t even know loans were sanctioned in their names. This was a pure insider job, exploiting systemic vulnerabilities.
The Digital Vulnerability: How Banking Systems Were Bypassed
The EOW probe has laid bare the disturbing ease with which core banking software was allegedly manipulated. Investigators found deliberate overrides of standard checks, absent documentation, and forged digital trails.
The official added that there was no physical gold, no receipts, and no approvals beyond the insiders. The fraudulent transactions were spread across three months, with amounts systematically siphoned to evade internal scrutiny. Experts believe this exposes critical gaps in bank audit systems and raises questions about whether similar frauds might remain undetected in other branches nationwide.
A Legal Test Ahead: The Battle in Special Court
On June 27, 2025, EOW filed a nearly 2,000-page chargesheet before the Hon’ble Special Court (Prevention of Corruption Act) in Raipur. Charges include criminal breach of trust (IPC 409), forgery (IPC 467, 468), use of forged documents (IPC 471), criminal conspiracy (IPC 120B), and destruction of evidence (IPC 201), along with violations under the Prevention of Corruption Act, 1988 (Amended 2018).
If convicted, the accused face significant prison terms and financial penalties. Legal analysts say the prosecution will rely heavily on digital forensics and banking records to secure convictions. Meanwhile, Indian Overseas Bank has initiated internal inquiries and disciplinary proceedings. The bank is reportedly working to compensate any affected customers and restore trust shaken by the revelations.