Rs 21.5-Crore Scam Detected At UP Cooperative Bank In Gonda, FIR Against 16

An alleged fraud of about Rs 21.5 crore has been detected at the Uttar Pradesh Cooperative Bank headquartered here, following which an FIR has been registered against 16 people, including three former branch managers and a former cashier, police said on Wednesday.

City Circle Officer Anand Rai said a special audit by a chartered accountant and an internal bank inquiry revealed serious irregularities and a well-planned fraud in the loan disbursement system. He alleged there were violations of RBI guidelines and the bank’s internal policies.

He said the then branch manager, in collusion with bank staff and others, allegedly formed a syndicate and misused Rs 21.47 crore between December 2021 and June 2025 by irregularly sanctioning and disbursing loans.

The probe found that the accused routed funds through accounts of his family members, including his mother, wife and son.

Based on the findings, an FIR was lodged at Kotwali Nagar police station on the complaint of Assistant General Manager Bhuvan Chandra Sati on Tuesday, naming three former branch managers, a former cashier and 12 account holders.

In a related case, another FIR has been registered following a court order on a complaint by a bank customer, who alleged manipulation of records showing his Rs 9 lakh home loan as Rs 31 lakh despite regular repayments. Further investigation is underway, police said.