3 Branch Managers have been suspended in Gonda, Uttar Pradesh. Departmental action has been initiated in connection with the massive loan scam at the Badgaon branch of the UP Cooperative Bank in Gonda district. General Manager of the bank – Kapil Pathak has suspended the then-branch manager Pawan Kumar Pal, former branch managers Ajay Kumar and Sushil Kumar Gautam, and the then-assistant cashier Pawan Kumar with immediate effect.
Two FIRs have already been filed in this case. A preliminary departmental investigation has revealed the significant role of these four in the scam. To ensure the investigation is not affected, they were suspended even before the police investigation began. The police station is investigating the entire matter. The police department is also thoroughly examining the accounts of 205 account holders. It is alleged that these people have committed a massive fraud amounting to ₹21.47 crore.
This scam began in December 2021, when loan disbursements were exploited as a source of income at the Gonda branch. It is alleged that bank employees deceived people. According to guidelines, eligibility, income certification, collateral, and field verification are mandatory before disbursing loans. However, in most cases, these rules were violated. The borrowers did not have the original documents; the documents existed only on paper.
The Uttar Pradesh government and department are taking action against this fraud and corruption under their zero-tolerance policy.
