A long running bank fraud case in Kanpur has seen a major breakthrough, with the Economic Offences Wing arresting 4 people, including 2 women, for siphoning off customer funds from a public sector bank branch. The accused were produced before a court and sent to judicial custody, while action against 7 bank employees named in the case is pending due to the absence of prosecution sanction from the state government.
Investigators said the accused allegedly broke fixed deposits of unsuspecting customers at the Maharajpur branch and diverted the money into accounts controlled by them. The fraud came to light after an internal audit and a complaint filed in 2020, following which a criminal case was registered at the local police station. A total of 11 people have been named in the case. While the 4 non-employee accused have now been arrested, police are awaiting mandatory approval to proceed against the bank staff. “As soon as sanction is granted, the remaining accused will also be arrested and sent to jail,” an officer involved in the probe said.
The case relates to the alleged embezzlement of Rs 1,42,71,000 from customer accounts. Police have registered offences related to criminal breach of trust, cheating, forgery, use of forged documents as genuine, criminal conspiracy, and provisions of the Information Technology Act. During the operation, the EOW detained Mulayam Singh Yadav and Brijmohan Gupta near the Maharajpur police station. Based on their interrogation, 2 women accused were arrested later. The arrests followed detailed technical analysis of bank transactions and account trails tracked over several months.
Police revealed that Brijmohan Gupta allegedly misused the position of his son, who worked at the bank, to facilitate the fraud. “He would help customers open accounts and then, with inside access, fixed deposits were prematurely broken and the money routed to accounts controlled by the accused,” an official said. Funds were often withdrawn within hours to avoid detection. Investigators found similar patterns in transactions linked to Mulayam Singh Yadav. “The pattern clearly indicates coordinated planning and active collusion,” an officer said. Officials said the investigation is ongoing, recovery and asset attachment will be pursued, and more arrests are possible once approval is granted.
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