A serious case of fraud has come to light in Karnal Cooperative Bank, where the manager of the Balla and Salwan village branches allegedly misused ₹20 lakh of the bank’s money. The fraud was discovered during a routine audit and investigation carried out by the bank’s headquarters. According to the investigation, the manager had withdrawn ₹15 lakh from the Balla branch account and ₹5 lakh from the Salwan branch account, both of which are held in Punjab National Bank’s Balla branch, during the months of June and July 2024. However, he did not report these withdrawals to the headquarters, as he was supposed to.
It is being alleged that the branch manager used this money for his personal needs. In cooperative banks, branch managers are given the authority to deposit or withdraw money from accounts in nationalized banks like PNB, to avoid the need to carry large amounts of cash to the city. But this authority is to be used only for bank-related work, not personal purposes. Jitendra Mandal, a retired employee of the bank, brought this matter to light by filing complaints with the Cooperative Department, Registrar Cooperative Society, and Harco Bank.
The fraud initially appeared to have been covered up. When the irregularity was found during the January 2025 audit, instead of immediately taking strict action against the manager, the bank officials allegedly allowed the manager to repay the embezzled amount to avoid further trouble. This move was seen as an attempt to protect him from disciplinary action. But when a complaint about the matter reached higher authorities and government bodies, the pressure mounted. As a result, around eight months after the fraud took place, the manager was finally suspended on March 26, 2025.
General Manager Sheetal of the cooperative bank confirmed that the fraud was discovered during a regular investigation and audit. She also stated that the Development Officer (DO) of the bank had taken action during the investigation, and departmental procedures were followed accordingly.
This case has raised serious concerns about how internal fraud is handled within cooperative banks, especially when there appears to be a delay or reluctance in taking timely and transparent action against wrongdoers.
