UP Gramin Bank Multi Crore Fraud, Public urges Minister to take action

An alleged multi-crore fraud at the Budhana branch of Uttar Pradesh Gramin Bank has become a major concern, with the matter now reaching the state government. On Sunday, Thakur Ramnath Singh, Chairman of the District Cooperative Bank, met Uttar Pradesh Cooperation Minister JPS Rathore and informed him about the alleged scam and the difficulties faced by affected farmers.

During the meeting, Singh told the minister that hundreds of farmers had reportedly lost their hard-earned money due to the alleged fraud. The affected farmers have been protesting outside the bank for the past 14 days, demanding the return of their deposited money and action against those responsible.

Singh urged the minister to order a high-level investigation into the matter and ensure justice for the affected farmers. He also requested that steps be taken to recover and return their deposited funds as soon as possible. In addition, he demanded strict legal action against the bank officials and employees found responsible for the alleged fraud.

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What is the scam about?

Customers have alleged fraudulent withdrawals from accounts at the Budhana branch of the UP Gramin Bank. 25 customers complained to bank officials about being defrauded of Rs 1 crore. Initial investigations by the regional office team also revealed irregularities.

A recommendation was also made to suspend two employees, including former manager Rupak Rana. All bank employees are under the scanner.

Four employees, including the then-branch manager, colluded to embezzle approximately ₹8.56 crore. This money was withdrawn from customers’ accounts without their consent and transferred to other accounts. The investigation also revealed suspicious transactions on a large scale.

A case was filed at the Budhana police station by the senior manager of the branch’s regional office against four bank employees, including the then branch manager. In the case filed at the Budhana police station, Navdeep Singh, the senior manager of the regional office, stated that during a review on September 18th, irregularities at the Budhana branch became known. A detailed investigation was initiated the next day, September 19th.

The investigation revealed that the then branch manager Rupak Rana, originally a resident of village Daha in Baghpat and currently residing at Officer City-2 Rajnagar Extension, Ghaziabad, assistant manager Neha Dilwalia, resident of Brahmaputri Enclave, Siddharth Vihar, Ghaziabad, assistant manager Vikas Kumar, resident of Sarai Nazar Ali, Ghaziabad and office assistant Gaurav Agarwal, resident of Bachan Singh Colony, New Mandi, Muzaffarnagar, together withdrew money from the accounts of consumers.

The accused withdrew funds from consumer accounts and transferred them to other accounts. The investigation also revealed that customer account transactions, records, vouchers, customer mandates, authorizations, system entries, and audit trails were tampered with. Several suspicious transactions were uncovered, involving the diversion of funds from customer accounts to third-party accounts without valid customer mandates or authorizations.

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