The Economic Offences Wing (EOW) in Bhubaneswar has apprehended two former officers, including the branch manager of the Central Bank of India’s Bhadreswar branch in Cuttack, in connection with a Rs 3.3 crore bank fraud. The arrested individuals are identified as the ex-branch manager, Dambarudhar Nayak, and the ex-agricultural finance officer, Devidutta Panigrahy.
Nayak and Panigrahy were taken into custody on December 7 from Keonjhar and Bhubaneswar, respectively, according to information provided by EOW officials on Friday. Both individuals served in the bank from September 18, 2015, to November 11, 2018. The arrests were made based on a complaint filed by Anadi Biswas, the Regional Head of Central Bank of India, Bhubaneswar.
The allegations involve unauthorized sanctioning and fraudulent transactions related to 68 Central Kisan Credit Cards (CKCC) and 24 Term Loan accounts, as well as the illicit diversion of government subsidies, resulting in a loss of Rs. 3,33,52,602.03 to the bank.
According to EOW, the duo unlawfully sanctioned/diverted Rs 85,49,941 in 68 CKCC accounts, Rs 1,49,18,103 in 24 Term Loan accounts, Rs 15,60,000 of subsidy for eight borrowers of the Prime Minister Employment Generation Programme (PMEGP) scheme, and Rs 83,24,558.03 through 114 irregular transactions in the bank’s profit and loss accounts.
“The accused sanctioned the loan in the name of different persons/borrowers regardless of their eligibility and also without the knowledge and consent of the borrowers. Besides, they have raised the limit of the loans fraudulently beyond the knowledge of the borrowers. They have deliberately created and used the forged documents to sanction the loans,” stated the EOW in a release.
While Dambarudhar Nayak has already been dismissed by the bank, disciplinary action is underway against accused Devidutta Panigrahi, according to sources.