Exposing a Rs 21.5 Crore Fraud at Uttar Pradesh Cooperative Bank

A Rs 21.5 crore fraud has been uncovered at Uttar Pradesh Cooperative Bank. An FIR names 16 individuals, including former bank managers. A special audit revealed violations in the loan disbursement process. Funds were allegedly routed through family members, leading to legal action and ongoing investigations.

A fraud amounting to approximately Rs 21.5 crore has been uncovered at the Uttar Pradesh Cooperative Bank, prompting the registration of an FIR against 16 individuals, including three former branch managers and a former cashier. The police announced the development on Wednesday.

City Circle Officer Anand Rai disclosed that a special audit, conducted by a chartered accountant in conjunction with an internal bank inquiry, unearthed significant irregularities and fraudulent activities in the bank's loan disbursement system. He noted that there were alleged violations of RBI guidelines alongside deviations from the bank's internal policies.

The investigation revealed that the former branch manager, in collaboration with bank staff and external associates, purportedly created a syndicate. They misappropriated Rs 21.47 crore between December 2021 and June 2025 by improperly approving and disbursing loans. Funds were allegedly routed through accounts belonging to family members of the accused, including his mother, wife, and son. Subsequently, an FIR was lodged at Kotwali Nagar police station following a complaint by Assistant General Manager Bhuvan Chandra Sati. The case also includes another FIR after a court order, following a customer's complaint about manipulated loan records, with further investigations ongoing.

(With inputs from agencies.)