PNB fraud: ₹12-crore bank fraud dates back to 2023, police say

Greater Noida: The alleged fraudulent transfer of more than ₹12 crore from a Punjab National Bank (PNB) branch in Greater Noida had been underway since 2023 and involved multiple bank accounts, including those of the victims, police said on Thursday, as the number of complaints continued to rise

Greater Noida: The alleged fraudulent transfer of more than ₹12 crore from a Punjab National Bank (PNB) branch in Greater Noida had been underway since 2023 and involved multiple bank accounts, including those of the victims, police said on Thursday, as the number of complaints continued to rise.

The fraud came to light on Tuesday when farmers visiting the PNB Accher branch in Sector Pi-1 to withdraw money discovered that their accounts had been emptied. (HT Archive)

The fraud came to light on Tuesday when farmers visiting the PNB Accher branch in Sector Pi-1 to withdraw money discovered that their accounts had been emptied. Several victims had received compensation for land acquired for the Noida International Airport project.

A senior police officer involved in the investigation, requesting anonymity, said the money was routed through multiple accounts, making it difficult to trace individual transactions. “For instance, one FD was terminated and its money was transferred to another victim’s account before being withdrawn. Due to the large number of transactions, we are struggling to identify a specific source,” the officer said.

Sanchit Sharma, assistant commissioner of police (ACP), Greater Noida, said people other than farmers had also lost money. “With the help of other investigative agencies, including the bank’s internal committee, efforts are underway to identify the persons involved. The process of returning the money has started,” he said.

Vinod Kumar, station house officer of Beta 2 police station, said the number of complaints and the amount allegedly transferred fraudulently had increased substantially as more account holders learnt about the case. “Many people contacted us on Thursday as well,” he said.

Victims, meanwhile, alleged that bank officials were asking them to submit affidavits declaring the amounts deposited in their accounts and fixed deposits (FDs) to facilitate the return of their money.

Amarpal, a resident of Accher village, alleged he had lost three FDs worth ₹80 lakh and another ₹10 lakh from his savings account. He discovered the fraud when he visited the branch to withdraw ₹10 lakh from a matured FD and learnt that his FDs had been broken on June 16.

“First, they broke our trust, and now they are asking us to approach lawyers and submit affidavits. Why should we undergo this trouble when we are not at fault?” he asked.

Amarpal said the bank had warned that it could recover money from customers if they deliberately inflated the amounts claimed. “We have decided not to submit affidavits,” he said.

Another account holder, Sandeep, said ₹1.28 crore was missing from his account. He said officials were seeking affidavits detailing previous transactions to reconcile the allegedly fraudulent transfers. “There are close to 100 people whose money was transferred without consent,” he said.

A case under Section 316(5) of the Bharatiya Nyaya Sanhita, relating to criminal breach of trust, was registered. According to the FIR registered at Surajpur police station on Wednesday, farmer Shrichand named 21 people in his complaint, putting the alleged embezzlement at more than ₹12.12 crore.

Ram Vinod Kumar, lead bank manager for Gautam Budh Nagar district, said PNB’s head office in Delhi had put the transferred amount on hold and that the money would be returned. All staff members at the branch, including the manager, had been suspended, he said, adding that the CBI had been brought in to investigate alongside the bank’s internal inquiry.

Rajesh Bhowmick, Zonal Manager of Punjab National Bank for Delhi-NCR, told media on Thursday, “We have filed an FIR with the CBI. All staff members have been suspended, and strict action will be taken against those responsible in accordance with the bank’s guidelines. We also refunded money to three account holders on Thursday. We are verifying transactions of genuine account holders, and their money will be refunded accordingly,”

“Furthermore, the amount reported by media is significantly higher than the actual figure. We are currently reconciling the accounts to determine the total amount, which will be disclosed once the reconciliation process is complete,” he added.