Did ED Arrest a Bank Official for Swindling Rs 16 Crore?
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Synopsis
In a shocking case of financial fraud, a suspended official from the Bank of India has been arrested for illegally closing 127 accounts and embezzling over Rs 16 crore. Delve into the details of this extensive case of deceit that has rattled the banking sector and affected numerous innocent customers.
Key Takeaways
- Fraud Detection: Stringent measures are needed to detect and prevent banking fraud.
- Account Security: Customers must monitor their accounts regularly.
- Vulnerable Customers: Special attention should be given to senior citizens and minors.
- Legal Action: Authorities must take swift legal action against fraudsters.
- Public Trust: Restoring public trust in banks is crucial.
Mumbai, Sep 19 (NationPress) A bank official who was suspended from the Bank of India has been taken into custody by the Enforcement Directorate (ED) for the fraudulent closure of 127 dormant bank accounts, which included Savings and Current Accounts, Term Deposits (TDs), and Senior Citizen Savings Scheme (SCSS) accounts. Over the span of two years, he illicitly transferred Rs 16.10 crore into his own account, according to an official statement made on Friday.
The ED's Mumbai branch apprehended Hitesh Kumar Singla, a suspended Staff Officer of the Bank of India, on September 17 at Ahmedabad Junction Railway Station. This action was taken under the provisions of the Prevention of Money Laundering Act, 2002, as stated by the official.
The accused was presented before the Special PMLA Court in Greater Bombay, which ordered his custody with the ED for a duration of seven days.
The investigation was initiated following an FIR filed by the Central Bureau of Investigation, ACB, Mumbai, against Singla and others, citing violations of Section 409 of IPC (criminal breach of trust), Section 316(5) of BNS, and Section 13(2) along with Section 13(1)(a) of the Prevention of Corruption Act, 1988.
The ED's findings revealed that between May 2023 and July 2025, Singla, acting with malicious intent, illegally closed various accounts, including Term Deposits (TDs), Public Provident Funds (PPFs), Senior Citizen Savings Scheme accounts, Savings Bank (SB) accounts, and Current Accounts (CAs) without proper authorization.
The illicit funds were funneled into his personal savings accounts held at the State Bank of India, as revealed by the ED.
Singla specifically targeted vulnerable customers—including senior citizens, minors, deceased individuals, and dormant accounts—to evade detection, according to the investigation.
The diverted funds were layered and transferred discreetly. This scheme allowed Singla to defraud the Bank of India and its clients of Rs 16.10 crore, consequently harming the bank's reputation and diminishing public trust due to his abuse of his official position, the official statement noted.
Since the fraud came to light, Singla had been on the run and did not report to the Bank of India.
Based on specific intelligence, supported by technical surveillance, the ED successfully tracked and arrested him at Ahmedabad Junction, despite his attempts to elude capture by frequently changing seats and coaches on the Mahamana Express traveling from Ujjain to Veraval.
Following his arrest, searches were conducted under Section 17 of PMLA at the premises of one of his accomplices, according to the ED.
Point of View
We at NationPress believe that accountability is paramount in the financial sector. This incident underscores the need for stringent oversight and transparency to protect customers. We must remain vigilant against fraud and ensure that trust is restored in our banking institutions.
NationPress
20/09/2025
Frequently Asked Questions
What charges were brought against Hitesh Kumar Singla?
Hitesh Kumar Singla faces charges of criminal breach of trust under Section 409 of IPC, along with violations of the Prevention of Corruption Act.
How much money was embezzled?
Singla is accused of embezzling Rs 16.10 crore from 127 accounts.
What methods did Singla use to commit the fraud?
Singla illegally closed dormant accounts and transferred the funds to his personal savings account, targeting vulnerable customers to avoid detection.
Where was Singla arrested?
He was arrested at Ahmedabad Junction Railway Station while trying to evade capture.
What is the current status of the investigation?
The investigation is ongoing, with ED conducting searches related to the case and Singla in custody for further questioning.
