Big Scam in UCO Bank! Rs.71 Lakh Subsidy Scam Exposed in Uttar Pradesh

Firozabad: A big fraud of loan subsidy has been exposed in Uttar Pradesh. A subsidy of ₹71.50 lakh, meant for youth beneficiaries under the Mukhyamantri Yuva Swarojgar Yojana (MYSY), has been embezzled by officials of Industries Department and UCO Bank.

How the Scam Came got discovered?

Mukhyamantri Yuva Swarojgar Yojana (MYSY) offers loans of up to ₹25 lakh to young people for starting new businesses. Along with the loan, the government also provides a 25% subsidy through banks. This support encourages youth to take up self-employment and promotes entrepreneurship.

In this case, the subsidy did not reach the actual beneficiaries. When the Industries Department noticed the irregularity, an inquiry was conducted at UCO Bank. The investigation exposed a large-scale fraud, and the District Magistrate (DM) has now ordered an FIR against the UCO Bank branch manager. A recommendation has also been made for a special audit of all department schemes.

During the financial years 2023–24 and 2024–25, loans were sanctioned for 20 beneficiaries under MYSY through a UCO Bank branch. However, the subsidy of these beneficiaries—amounting to ₹71.50 lakh—was diverted into two fake accounts provided by the branch manager himself.

• ₹25 lakh (for 4 beneficiaries) was transferred into the account of Saurabh Gupta.
• ₹46.50 lakh (for 16 beneficiaries) was transferred into the account of Deepanshu Tiwari.

Shockingly, these fake accounts were also formally submitted by the bank manager to the Industries Department as beneficiary accounts, making the fraud look genuine.

The investigation revealed that the scam was running for two years. The bank manager, field officer, and officials of the Industries Department all played a role. Every transfer carried their signatures and approval, proving collusion.

Part of the fraud took place during the tenure of former Deputy Commissioner of Industries Dushyant Kumar, and the rest during the tenure of Deputy Commissioner Sandhya.

On receiving a complaint, the DM formed a committee led by ADM Vishu Raja, which included senior treasury officials and others. The committee confirmed that the subsidy was misdirected and withdrawn from fake accounts.

Following the report, the DM has ordered an FIR against the UCO Bank branch manager. The report has also been sent to the state government for further action against all involved. The branch manager of UCO Bank Rani Wala Compound has been attached to Kanpur. At the same time, after the matter came to light, a confidential investigation has been started at the level of the Industry Department and the bank branch.