Major fraud to the fore at Dhuri Punjab Gramin Bank branch; manager embezzles Rs 2.29 crore through fake loans
Harmel Singh, a resident of Nabha, is accused of using his colleagues' login credentials and passwords to apply for loans in the names of customers
PTC Web Desk: A massive financial fraud amounting to Rs 2.29 crore has been uncovered at the Dhuri branch of Punjab Gramin Bank, involving the bank manager, Harmel Singh. He allegedly siphoned off funds by approving fake loans in the names of unsuspecting customers using internal employee IDs and manipulated verification processes.
The fraud took place over a period from 2021 to April 2024, during which Harmel Singh took advantage of his position and used other employees' login credentials to approve loans without any external checks. The loans were processed internally by Singh, who also verified them, preventing any suspicions from arising.
The bank's internal auditors flagged the fraudulent activity during an audit in April 2024. As per the audit, 388 loan applications were found to have been processed, out of which 62 were identified as fraudulent. The total amount embezzled was Rs 2.29 crore, which includes principal and interest, from fake loans spanning from 2021 to April 2024.
Harmel Singh, a resident of Nabha, is accused of using his colleagues' login credentials and passwords to apply for loans in the names of customers. He manipulated the system to approve loans while posing as a higher official, ensuring the transactions went unnoticed. The embezzled funds were then transferred to his or his acquaintances' accounts, completing the fraudulent cycle.
Following the audit's revelation, the bank has initiated legal action against Harmel Singh. The details of the fraud have been forwarded to higher authorities, and an official investigation is underway. The bank has also requested a police investigation and has urged the CBI to intervene for further inquiry into the matter.