Gorakhpur: In a major breakthrough in a 27-year-old bank embezzlement case, the Economic Offences Wing (EOW) has arrested Jaideep Mitra, the then branch manager of Punjab & Sind Bank’s Golghar branch, from Varanasi. The accused had been absconding for years and is alleged to have siphoned off ₹34.78 lakh through fraudulent bank accounts. He will be produced before a court for custodial interrogation.
Organised embezzlement in 1999
According to investigators, in 1999 the then branch manager, along with a cashier, clerk and other staff, allegedly opened fake bank accounts in the names of their relatives. Bank funds were illegally transferred into these accounts and later withdrawn. The structured manipulation led to the embezzlement of ₹34,78,420.
The fraud triggered panic within the banking department at the time, and an FIR was registered at Cantt police station under charges of criminal breach of trust, forgery, fabrication of documents and criminal conspiracy.
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Probe handed to EOW in 2000
The initial inquiry was conducted by local police, but given the seriousness of the case, the investigation was transferred to the EOW on July 10, 2000. The probe identified nine accused. Most were arrested earlier, while two remained absconding for years.
With Mitra’s arrest, one of the key fugitives has now been brought within the ambit of law. Efforts are underway to trace the remaining absconding accused.
Arrest following tip-off in Varanasi
The EOW received a confidential input that the main accused was living in hiding in Varanasi. A surveillance operation was mounted and a raid led to his arrest. His identity was confirmed through old records and documentation.
Officials said the accused had been frequently changing locations and concealing his identity, which delayed his arrest for years.
Clear signs of internal collusion
Investigators maintain that the case reflects systemic internal collusion within the bank. Opening fake accounts, routing funds and withdrawing cash formed part of a pre-planned mechanism. Distinct roles were allegedly assigned to different employees, allowing the fraud to go undetected for a long period.
Banking experts note that such insider frauds highlight the need for robust internal audits, dual authorisation systems and real-time transaction monitoring to detect anomalies at an early stage.
Further action based on documentary evidence
EOW officials said further legal action will be based on banking records, account statements, transfer entries and other documentary evidence. During interrogation, the accused will be questioned about the end use of the siphoned funds, possible beneficiaries and links to absconding associates.
The agency reiterated that the search for the remaining accused is ongoing and strict action will be taken against all those involved.
Trust and accountability in focus
The delayed arrest has once again underscored the importance of transparency and accountability in the banking system. Insider embezzlement cases directly impact depositor confidence and institutional credibility.
The EOW stated that the investigation will be taken to its logical conclusion and the roles of all accused will be established in accordance with law.
