A serious case of fraud has come to light at the Kotdwar branch of the Uttarakhand Cooperative Bank, where the General Manager (GM), Deepak Kumar, allegedly bypassed established protocols to approve a ₹10 lakh loan in the name of his own brother. The investigation into the matter has revealed that the loan was sanctioned without the proper scrutiny of the bank’s loan committee and in violation of bank policies. The shocking discovery highlights deep lapses in governance and internal controls at the bank, leading to swift action by the bank’s management and regulatory authorities.
The Loan Fraud
The fraud came to light when a complaint was lodged regarding the approval of a ₹10 lakh loan to Brijesh Kumar, the brother of Deepak Kumar, who serves as the General Manager at the Kotdwar branch. According to internal communication from the GM, he had sanctioned the loan during a meeting of the loan committee for the Kumaon division on October 10. However, upon investigation, it was found that no such loan approval had occurred in any loan committee meeting for either the Kumaon or Garhwal divisions. The investigation revealed that Deepak Kumar had unilaterally sanctioned the loan without the involvement of any loan committee, violating internal banking procedures.
Violation of Loan Policies
The investigation, which was initiated under the direction of the Managing Director (MD) of the State Cooperative Bank, Neeraj Belwal, further uncovered several violations of the bank’s loan policy. According to the policy, no officer is allowed to approve a loan for their family members independently; instead, the approval of a higher authority is required. This rule was put in place to prevent any potential conflicts of interest and ensure that loans are sanctioned through a transparent process. In this case, Deepak Kumar not only approved the loan for his brother but also acted as the guarantor for the same loan, which is a clear violation of the rules.
The investigation committee, which conducted a thorough review of the case, found that Deepak Kumar had failed to follow any of the necessary procedures for approving such loans. The loan, which was issued without committee oversight, was also renewed without proper verification. The fraudulent nature of the transaction was uncovered when it was revealed that the documents related to the loan were not properly scrutinized. The GM had, therefore, not only bypassed the loan committee but also violated the trust placed in him by the bank and its customers.
Immediate Action Taken
Following the investigation, MD Neeraj Belwal took immediate action and suspended Deepak Kumar from his position as General Manager of the Kotdwar branch. The suspension was based on the findings that Deepak Kumar had violated bank policies, including approving a loan to a family member without obtaining higher-level approval. In his defense, Deepak Kumar claimed that he had the authority to approve loans up to ₹20 lakh, which he argued justified his actions. However, the investigation committee disagreed, stating that even within his discretionary limits, Deepak Kumar had violated the principle of transparency and the bank’s policy on family-related loans.
Ongoing Vigilance Inquiry
In addition to the internal investigation, Deepak Kumar is now facing an open inquiry by the State Vigilance Committee. This investigation will examine not only the ₹10 lakh loan case but also other alleged irregularities under his management. These include suspicions of improper loan disbursement in the Chamoli and Tehri branches, as well as concerns regarding misuse of Kisan Credit Cards. The State Vigilance Committee had previously approved an open investigation into Deepak Kumar’s activities, based on reports of similar violations.
The vigilance inquiry is expected to look into these matters in more detail, especially focusing on whether Deepak Kumar misused his position for personal or familial gain. This will also include investigating any other potentially fraudulent loans that may have been approved under his watch, which could result in further charges against him if any wrongdoing is found.
