
An embezzlement case involving ₹3.39 crore has been uncovered at the Mora Mustakam branch of Prathama UP Gramin Bank. The fraud was reportedly carried out through 47 housing and e-rickshaw loans. An internal investigation by the bank has accused former branch manager Sai Prakash and assistant manager Manoj Kumar of serious financial irregularities. Acting on the orders of the Director General of the Economic Offenses Wing (EOW), the Civil Lines Police have registered a case against the accused.
Complaint Highlights Fraudulent Practices
The issue came to light when Senior Manager Kislay Kumar filed a formal complaint with the Director General of EOW on October 14. The preliminary investigation revealed that loans were sanctioned based on fake Income Tax Returns (ITRs). Additionally, subsequent installments for housing loans were released without verifying the utilization of the initial funds for construction purposes.
In the case of e-rickshaw loans, it was found that there was no confirmation of whether the loan amounts were used to purchase the vehicles. The fraudulent activities reportedly took place between January 2018 and August 2021, during which Sai Prakash and Manoj Kumar were serving as branch manager and assistant manager, respectively.
Bank’s Investigation Findings
The bank declared the incident as fraud on August 6, 2024. According to the internal investigation, the embezzlement was premeditated and involved collaboration with several borrowers. The bank has provided detailed findings and original documents related to the case and demanded legal action against the accused.
Police Action and Further Investigation
Civil Lines Police Station in-charge Manish Saxena confirmed that a case has been registered following the EOW’s directives. The investigation has been handed over to EOW Meerut for further examination.
Former Manager Denies Allegations
Sai Prakash, who now serves as a senior manager at the regional office, has denied the allegations. He stated that he had submitted a clarification to the bank three months ago during the departmental investigation. According to him, loans were disbursed for 16 e-rickshaws during the COVID-19 pandemic, but seven owners were unable to operate the vehicles and sold them.
Regarding housing loans, he claimed that photographs of completed houses were provided, and it is the current manager’s responsibility to recover the loans. Prakash accused the bank of acting unfairly and said no irregularities were flagged during the annual audits. He called for a thorough investigation and justice in the matter.
Next Steps
The case is now under the purview of EOW Meerut, which will delve deeper into the allegations and verify the claims made by both the bank and the accused. Further developments are awaited as the investigation progresses.