Clerk of a Nationalised Bank Arrested for Misappropriation of Funds

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In another case of misappropriation bank funds, a clerk of a nationalized bank along with a restaurant operator has been arrested. Many such cases have been surfacing in the past and it is imperative that the banks have a system in place to safeguard people’s hard earned money.

Misappropriation of funds by bank employees, particularly by those in the lower rung, has been on the rise.  In most cases, this goes unnoticed for a while, with perpetrators often making good their escape.

However, in a recent case, as reported in The Times of India, a clerk of a nationalized bank and a restaurant operator have been apprehended and found guilty of charges of misappropriation of funds and forgery of an amount of around 13.5 lakhs at a Margao Branch.

A case of fraud was filed by the Central Bureau of Investigation (CBI) after investigations indicated that several customers with term deposits and saving accounts had been cheated off their money.


A complaint in this regard was filed by the bank’s Deputy General Manager of the Panjim zonal office.  He had sought an investigation into the reported fraud at their Vidyanagar, Gogol, Margao branch.

The two were booked by the CBI for criminal conspiracy, cheating using forged documents, falsification of accounts and criminal misconduct by a public servant under the IPC and Prevention of Corruption Act.

According to the CBI, between the period November 1998 and May 2008, the accused clerk credited fixed deposits and renewed them for a lesser amount every time, instead of the full amount. The difference was fraudulently utilized for issuing pay orders in the name of third parties.   

The CBI also investigated into charges that the clerk had many current as well as saving bank accounts, with different banks, as also the charge that there were frequent transfer of funds between the clerk and the restaurant operator.  Raids at the residence of the duo also revealed bank passbooks and cheques of different banks, the CBI stated.

Source: TOI

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