PNB Loan Scandal in Assam, Unauthorized Loan Sanctions in 38 SHGs

A serious case of financial irregularity has come to light at Punjab National Bank’s Tingrai Branch in Digboi, Assam’s Tinsukia district, where Prasenjit Dutta, the then Deputy Manager, is likely to face disciplinary action. He is accused of unauthorized loan approvals and fund transfers involving 38 Self-Help Group (SHG) accounts under the Tingrai Panchayat.

Inquiry Underway into Suspicious Transactions

The matter is currently under investigation. Rajesh Paul, the Lead District Manager (LDM) of Tinsukia, visited the branch on Friday morning to verify documents and scrutinize the transactions.

“We are looking into every aspect of the case — the transactions themselves, as well as the circumstances that led to them,” Paul stated, emphasizing that a thorough inquiry is in progress.

How the Irregularities Were Detected

The issue first came to light on July 19, when Branch Manager Sanjit Kumar noticed unusual activities in several SHG accounts. He found that loan amounts had been credited and moved without the knowledge or consent of the actual beneficiaries.

According to Kumar, loan funds were first credited to loan accounts, then transferred to savings accounts, and finally reversed much later — all without informing the SHG members. These unexplained movements raised red flags.

What makes the situation worse is that the SHG beneficiaries — mostly poor agrarian women — are now being forced to pay interest on loan amounts they never even used. The accumulated interest amounts to several lakhs, and it was imposed during the time the funds remained in their accounts without their knowledge.

To ease the situation, the investigating officer assured the SHG members that appropriate steps would be taken to provide relief related to the interest charges during the affected period.

In his defense, Prasenjit Dutta, who is now posted at PNB’s Tinsukia Highway Branch, stated that the transactions were made with the knowledge of an official from SRLM (State Rural Livelihoods Mission), operating under the Tinsukia district administration. He further added that it was the duty of the Bank Mitra (community banking facilitator) to inform SHG members about these transactions — a step that was clearly skipped.

Meanwhile, Tai Ahom Yuba Parishad activists, who were present at the branch to demand answers, were informed by Branch Manager Sanjit Kumar that the matter has been escalated to senior authorities in the Dibrugarh Circle, and action would be taken based on the findings.

Questions Raised on Role of SRLM and Block Officials

SHG beneficiaries have also expressed deep concern over the role of Hapjan Block officials and SRLM staff, who they allege failed to inform them about the sanctioning and disbursement of loans. This lack of transparency and communication violated standard banking procedures and has left many SHGs in financial stress.

It is important to understand that the Assam State Rural Livelihoods Mission (ASRLM), under the National Rural Livelihoods Mission (NRLM), was created with the goal of reducing poverty in rural areas. It focuses on organizing women and the poor into Self-Help Groups (SHGs) and linking them to sustainable livelihoods and financial support through proper institutional channels.

Unfortunately, this incident reflects a serious breach of trust and procedure, undermining the very goals ASRLM was set up to achieve.

This case is now being closely watched, and further action is expected as the investigation progresses. For the SHG beneficiaries, who placed their trust in these institutions, justice and resolution cannot come soon enough. More details will be released soon.