Greater Noida, Oct. 29 -- It was a shock of their lives for scores of Punjab National Bank customers who walked into the Aichhar branch in Greater Noida to check their savings, only to discover that their hard-earned money, in some cases, crores of rupees, had allegedly vanished from their accounts.
The suspected embezzlement of around Rs 35 crore has left farmers and other account holders scrambling for answers, triggered protests and prompted a multi-agency probe, with six beneficiary accounts in Goa, Mumbai and Jharkhand frozen. Investigators suspect, however, that the money may already have been moved to other accounts, complicating efforts to recover the funds.
The police cyber team and the bank's internal vigilance team are investigating the transactions, while senior bank officials from Mumbai and Noida are monitoring the case.
Official sources said PNB's senior management had also quietly initiated scrutiny of other branches in Gautam Budh Nagar district where compensation for land acquired for development projects had been deposited over the past two years. The bank is examining whether similar irregularities took place at other branches.
Vijay Kumar, assistant general manager, Punjab National Bank, Greater Noida, told Millennium Post, "An investigation into the matter is underway, and the officials found prima facie involved have already been suspended. Strict action will be taken against any other person found involved in the case. We are also receiving complaints from affected customers and examining their accounts to ascertain the total extent of the alleged fraud."
The developments came on Wednesday as a large number of worried customers visited the Aichhar branch to check their account balances, update passbooks and verify their fixed deposits (FDs). The rush continued through the day, prompting police to make additional security arrangements at the branch, which has remained closed since Tuesday amid mounting protests by customers.
Additional Commissioner of Police (Law and Order), Gautam Budh Nagar, Dr Rajiv Narayan Mishra, said bank officials had assured the police that the money withdrawn from customers' accounts would be returned.
"A case has been registered in the matter, and a police team is investigating it," he said.
Meanwhile, Punjab National Bank has filed a case with the Central Bureau of Investigation (CBI).
Punjab National Bank (PNB) said it had taken serious cognisance of complaints regarding alleged financial irregularities involving fixed deposit and savings accounts at its Greater Noida branch. The bank said the matter was being investigated on priority, with full cooperation extended to the concerned authorities. As of Wednesday, three claims involving Rs 43 lakh had been settled, and the bank assured customers that all genuine and valid claims would be honoured. It said it followed a zero-tolerance policy towards fraud, financial irregularities and misconduct, adding that strict action would be taken against anyone found responsible in accordance with applicable rules and procedures. The bank also said it was verifying the facts, assessing the extent of the reported discrepancies and strengthening its internal controls and monitoring mechanisms to protect customers' interests and prevent similar incidents.
At least 16 account holders, most of them farmers from Aichhar, Bironda, Viroondi Chakrasenpur and nearby areas, have approached the police, alleging that their fixed deposits and savings were either withdrawn or transferred to other accounts without their authorisation. Police said the number of complaints and the total amount involved would become clearer as the investigation progressed.
Following complaints from customers, Beta-2 police station registered an FIR against the bank employees under Section 316(5) of the Bharatiya Nyaya Sanhita (BNS), which deals with criminal breach of trust by a person entrusted with property in specified capacities. The complaints have been clubbed for investigation.
The bank has suspended twelve employees, including the branch manager, and initiated an internal inquiry. No official statement detailing the findings of the bank's investigation had been issued by its senior management till Wednesday.
According to the complaints, bank employees allegedly closed fixed deposits prematurely, transferred funds to other accounts and made entries in passbooks that did not accurately reflect the transactions. Several customers alleged that they discovered the suspected fraud only when they visited the branch to withdraw money or verify their savings.
The alleged amounts involved in individual accounts range from several lakh rupees to more than Rs 1 crore, with some customers claiming that their entire savings had disappeared.
One of the complainants, Vineet Bhati of Jai Shiv Transport, alleged that Rs 25 lakh was diverted from his account after he approached the branch for advice on mutual fund investments.
According to his complaint, he signed a cheque and related documents at the branch manager's direction, expecting the amount to be transferred to his savings account. He later discovered that the money had allegedly been transferred to another account belonging to a person with the same name.
Bhati said he raised the issue with the bank and sought the return of the money. The staff initially assured him that the amount would be credited within a day or two. However, on October 26, he was informed that the bank was examining the matter and that the money would be returned after the inquiry.
He subsequently approached the police and submitted a recording of his conversation with a bank employee as part of his complaint.
Another complainant, Shrichand of Birondi Chakrasenpur village, alleged that Rs 1.16 crore had been embezzled from his fixed deposit linked to an account at the Aichhar branch.
Gautam, a resident of Sector Pi, alleged that his father had around Rs 94 lakh in his bank account. When he visited the branch on October 26 to withdraw Rs 50,000, he discovered that only Rs 16,000 remained. He said he sought an explanation from the bank but did not receive a satisfactory response.
Other customers have reported similar discrepancies. Hanif Khan alleged that around Rs 39 lakh had been withdrawn from his account, while another customer, Sanjay, claimed that a fixed deposit worth approximately Rs 10 lakh had been closed prematurely and the money transferred elsewhere.
Complaints have also been filed by Vijay Pal, Subhash, Santosh, Saroj and Bijendra Singh, among others. The alleged losses in some of these accounts exceed Rs 1 crore, according to the complaints reported by police.
The alleged fraud has particularly alarmed farmers who had deposited compensation received for land acquired for infrastructure and development projects. For several families, the money represented their principal financial security after parting with agricultural land.
A resident of Bironda village, who claimed that around Rs 1.2 crore belonging to his family had gone missing, said his mother had received approximately Rs 1.3 crore in compensation linked to an airport land deal. The family had withdrawn Rs 10 lakh to Rs 20 lakh earlier but subsequently discovered that a substantial portion of the balance was missing.
He said the family had been assured that the money would be returned within 10 to 15 days, but it would also approach the police.
Meanwhile, customers staged a protest outside the bank on Wednesday, joined by members of the Bharatiya Kisan Union and other social organisations. They demanded the immediate restoration of their money and action against those responsible for the alleged fraud.
The farmers' organisations warned that their sit-in would continue until the affected customers received their money. They also threatened to intensify the agitation if the bank failed to resolve the matter.
The Bharatiya Kisan Union (Krishak) has claimed that the suspected fraud could be substantially larger, estimating the amount involved at Rs 130 crore to Rs 150 crore, and demanded an impartial, high-level investigation. Police have not confirmed this higher estimate.
Additional DCP (Greater Noida) Santosh Kumar told TOI that an ACP had been directed to lead the inquiry and that further action would depend on the findings. He said the total amount involved and the number of affected accounts would be established during the investigation.
Police are now examining the movement of funds, including the transfers to accounts in other states, and looking into whether bank employees acted in collusion with cyber fraudsters. The suspected involvement of additional employees or other branches has not yet been established.
With the bank's internal vigilance team and the police conducting parallel inquiries, the immediate priorities are to establish how the transactions were authorised, identify those responsible and trace the missing money. For the affected customers, however, the key demand remains the same: the return of their savings at the earliest.
Published by HT Digital Content Services with permission from Millennium Post.