The Economic Offences Wing (EOW) of the Jammu and Kashmir Crime Branch has filed a chargesheet against two former employees of the Central Cooperative Bank in connection with the alleged embezzlement of ₹3.11 crore at the bank’s Langate branch. Investigators allege that the accused, acting in collusion, fraudulently sanctioned fictitious loans and permitted unauthorised overdrafts far beyond their delegated financial authority, resulting in the alleged misappropriation of bank funds. The chargesheet has been filed before the Court of the Chief Judicial Magistrate, Handwara, under provisions of the Ranbir Penal Code relating to cheating, forgery, use of forged documents as genuine and criminal conspiracy.
According to the Crime Branch, the investigation was initiated following a written communication from the then Registrar of Cooperative Societies, Jammu and Kashmir, alleging large-scale financial irregularities and embezzlement across several branches of the Central Cooperative Bank in Baramulla district. The matter was subsequently entrusted to the Economic Offences Wing, which conducted a detailed examination of bank records, loan sanction procedures and financial transactions.
During the investigation, the agency allegedly found that the then branch manager of the Langate branch, in connivance with another employee, sanctioned fictitious loans and authorised overdrafts well beyond the financial powers delegated to him. Investigators claim that these transactions resulted in the alleged misappropriation of nearly ₹3.11 crore belonging to the bank. The agency maintains that the transactions were designed to facilitate the unauthorised diversion and misuse of bank funds.
The Crime Branch further stated that the investigation revealed an alleged criminal conspiracy between the two accused to execute fraudulent financial transactions. According to investigators, documentary evidence, banking records and other material collected during the probe indicate that the alleged irregularities were carried out in a systematic and coordinated manner, causing substantial financial loss to the cooperative bank. Following completion of the investigation, the agency filed the chargesheet before the competent court.
The two individuals named in the chargesheet are retired branch manager Ghulam Mohd Beigh and cashier-cum-clerk Abdul Hamid Gojrii. The Crime Branch said the allegations against both accused were substantiated through documentary evidence, witness statements and other material gathered during the investigation. The case will now proceed before the trial court, where both the prosecution and the defence will have the opportunity to present their respective arguments.
In a separate development, the Economic Offences Wing of the Crime Branch’s Jammu unit has also filed a chargesheet against a former employee of ICICI Prudential Life Insurance in another alleged financial fraud case. According to investigators, the accused allegedly fraudulently surrendered an insurance policy using forged documents and diverted more than ₹10.75 lakh into a fake bank account. The probe further alleges that duplicate policy documents, forged surrender papers and fabricated identity documents were used to open the fraudulent account before the policy proceeds were transferred into it.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said cases involving fraudulent loans, forged documents and abuse of financial authority highlight the need for stronger internal controls within banking and financial institutions. He said robust audit mechanisms, continuous transaction monitoring, risk-based supervision and multi-level approval systems can significantly reduce the likelihood of such fraud. According to him, periodic forensic audits and stronger compliance frameworks can help detect financial irregularities at an early stage. The judicial process in both cases will now proceed, with the final outcome depending on the evidence presented before the court and the findings recorded during trial.
