Lucknow: Allegations of large-scale financial misconduct have rocked the public banking system in Uttar Pradesh after the Uttar Pradesh Forest Corporation accused officials of a Bank of India (BoI) branch of misappropriating nearly ₹65 crore in the name of fixed deposits. Acting on a complaint filed by the corporation’s managing director, police have registered an FIR against unidentified employees of BoI’s Sadar branch and constituted two special teams to investigate the case.
According to the police, the amount involved is ₹64,82,21,365, which was meant to be invested as a fixed deposit on behalf of the state-run Forest Corporation. Senior officers said the investigation will focus on bank transactions, internal approvals, documentary records and the role of bank employees and officials associated with the process.
Assistant Commissioner of Police Anidya Vikram Singh said statements of bank staff and concerned corporation officials will be recorded as part of the probe.
Certified Cyber Crime Investigator Course Launched by Centre for Police Technology
Tender process preceded alleged fraud
Preliminary inquiry indicates that the Forest Corporation had earlier parked its funds in a fixed deposit with Bank of Maharashtra, the tenure of which expired in December 2025. Following this, the corporation invited fresh tenders on December 29, 2025, to reinvest the funds at competitive interest rates.
Several banks submitted bids, with Bank of India’s Sadar branch offering the highest interest rate of 6.73 percent. The proposal was examined and approved by the corporation’s internal committee, following which formal sanction was granted to proceed with the investment.
Funds transfer ordered, but FD allegedly never created
After approval, instructions were issued on December 31, 2025, to transfer the entire amount to Bank of India’s Sadar branch for the creation of a fresh fixed deposit. The funds were to be routed through the corporation’s designated banking channel.
However, investigators claim that due to unexplained reasons, the amount was not credited directly into the designated Bank of India FD account as per standard procedure. Instead, bank employees allegedly assured the corporation that the funds had been safely invested and corresponding FD documentation was in order.
Subsequent scrutiny revealed that no valid fixed deposit had actually been created in the name of the Forest Corporation.
Discrepancies detected during verification
The alleged scam came to light when the Forest Corporation sought formal confirmation and documentation of the fixed deposit. During reconciliation of records, discrepancies were found between internal bank entries and official FD registers.
Further verification showed that there was no legitimate fixed deposit corresponding to the amount transferred. Alarmed by the findings, the corporation ordered an internal review and subsequently approached the police, leading to the registration of the FIR.
Serious questions over banking oversight
The case has raised serious concerns about internal controls, compliance mechanisms and oversight within public sector banks, particularly in handling high-value government deposits.
Experts note that fixed deposits involving public funds are subject to strict protocols, including multiple levels of verification, documentation and audit trails. The alleged failure of these safeguards in a transaction involving nearly ₹65 crore has prompted calls for closer scrutiny by banking regulators.
Multiple angles under investigation
Police sources said the investigation will examine whether the alleged misappropriation was limited to a few bank employees or involved a broader conspiracy. Authorities will also trace the movement of funds to determine where the money was diverted and whether recovery is possible.
Efforts are underway to identify the accounts through which the funds were routed and to freeze them if required, officials said.
Government expresses concern
Officials associated with the Forest Corporation said the case is not merely about financial loss but also concerns the credibility of government institutions and public trust in banking systems. They stressed that accountability will be fixed once the investigation is complete.
