ED files PMLA case against ex-SBI officer in ₹7.96 crore laundering case in Bihar
Synopsis
A former SBI Field Officer in Bihar's Gaya district now faces a PMLA prosecution complaint after the ED alleged she ran a ₹7.96 crore scheme involving 68 fraudulent overdraft accounts — reusing the same fixed deposits as collateral multiple times and siphoning the proceeds for personal use. The case, rooted in a 2022 CBI chargesheet, highlights a recurring vulnerability in branch-level banking oversight.
Key Takeaways
The ED, Patna Zonal Office filed a prosecution complaint on 30 September 2026 before the Special Court (PMLA), Patna .
The accused, Priti Singh , is a former Field Officer at SBI's Manpur branch in Gaya, Bihar .
She allegedly fraudulently operated 68 overdraft accounts against term deposits, causing a wrongful loss of ₹7.96 crore .
The alleged proceeds of crime were reportedly used for personal and family expenses and to create additional fixed deposits for further borrowing.
The ED's probe was based on a CBI FIR and chargesheet 15/2022 filed on 30 December 2022 .
All charges remain allegations pending judicial consideration before the competent court.
The Directorate of Enforcement (ED), Patna Zonal Office, has filed a prosecution complaint before the Special Court (PMLA) in Patna against Priti Singh, a former Field Officer at the State Bank of India (SBI)'s Manpur branch in Gaya, Bihar, in connection with an alleged ₹7.96 crore money laundering case. The complaint, filed on 30 September 2026, centres on the alleged fraudulent operation of overdraft accounts and systematic manipulation of bank records.
What the Charges Say
The ED filed the complaint under Sections 44 and 45 of the Prevention of Money Laundering Act (PMLA), 2002, seeking the prosecution and conviction of Singh for the alleged offence of money laundering under Section 3, punishable under Section 4 of the Act. The agency alleges that Singh, while posted as a Field Officer at the Manpur branch, fraudulently sanctioned and operated 68 overdraft (OD) accounts against term deposits, including Term Deposit Receipts (TDRs) and Short-Term Deposit Receipts (STDRs).
According to the ED, the accounts were opened in Singh's name and in the names of her relatives through deliberate manipulation of bank records. The agency further alleged that liens on fixed deposits were removed and the same securities were reused to obtain multiple overdraft facilities — a layered scheme that allegedly resulted in a wrongful loss of approximately ₹7,96,00,916 to the bank.
How the Money Was Allegedly Used
The ED's investigation reportedly established that the alleged proceeds of crime were used by Singh for personal and family expenses. A portion of the funds was allegedly channelled back into creating additional fixed deposits, which were then used as collateral to obtain further overdraft or loan facilities — effectively recycling illicit funds through the banking system.
The bank later recovered part of the amount from fixed deposits pledged against the overdraft accounts, while the remaining sum was reportedly repaid by Singh with financial assistance from family members and relatives. However, the ED maintained that the subsequent repayment did not alter its finding that the alleged proceeds of crime had already been obtained, possessed, and utilised by the accused before being repaid.
Background: CBI FIR and Chargesheet
The ED's investigation was initiated on the basis of an FIR registered by the Central Bureau of Investigation (CBI) and a subsequent chargesheet — numbered 15/2022 — filed on 30 December 2022, against Singh. The ED's money laundering probe ran parallel to the CBI's criminal case, a standard practice under PMLA proceedings where the predicate offence is first established by another law enforcement agency.
This case is part of a broader pattern of ED action against bank insiders accused of exploiting their access to sanctioning powers. Notably, cases involving manipulation of overdraft accounts against fixed deposits have been flagged by the Reserve Bank of India (RBI) in past audit advisories as a systemic vulnerability in branch-level banking operations.
What Happens Next
With the prosecution complaint now filed, the matter will be subject to judicial consideration before the Special Court (PMLA), Patna. The court will assess the allegations independently; all charges remain allegations at this stage. The ED stated that its investigation in the case has been completed. Legal proceedings are expected to determine the culpability of the accused and the extent of recoverable proceeds.
Point of View
Particularly around overdraft sanctioning against fixed deposits. While the ₹7.96 crore figure is modest compared to high-profile bank fraud cases, the method — reusing the same collateral across multiple OD accounts — points to a compliance blind spot that regulators have flagged but not fully resolved. The CBI chargesheet dates to December 2022, meaning over three years elapsed before the ED reached the prosecution stage; the pace of PMLA proceedings in routine bank fraud cases deserves scrutiny. Courts, not enforcement agencies, will ultimately determine guilt — but the pattern of insider-enabled overdraft fraud warrants institutional accountability beyond individual prosecution.
NationPress
8 Oct 2026
Frequently Asked Questions
Who is Priti Singh and what is she accused of?
Priti Singh is a former Field Officer at the State Bank of India's Manpur branch in Gaya, Bihar. The ED has alleged that she fraudulently sanctioned and operated 68 overdraft accounts against term deposits by manipulating bank records, resulting in a wrongful loss of approximately ₹7.96 crore.
What is the PMLA prosecution complaint filed by the ED?
It is a formal legal document filed before the Special Court (PMLA) in Patna on 30 September 2026, under Sections 44 and 45 of the Prevention of Money Laundering Act, 2002. The ED is seeking the prosecution and conviction of Priti Singh for alleged money laundering under Section 3, punishable under Section 4 of the Act.
How was the alleged fraud carried out?
According to the ED, Singh allegedly opened 68 overdraft accounts in her name and those of her relatives by manipulating bank records. Liens on fixed deposits were allegedly removed and the same securities reused to obtain multiple overdraft facilities. The proceeds were allegedly used for personal and family expenses and to create further fixed deposits for additional borrowing.
What was the role of the CBI in this case?
The ED's money laundering investigation was initiated on the basis of a CBI FIR and a subsequent chargesheet numbered 15/2022, filed on 30 December 2022 against Singh. The CBI established the predicate offence, which then enabled the ED to investigate the money laundering angle under PMLA.
What happens now that the prosecution complaint has been filed?
The matter will now be subject to judicial consideration before the Special Court (PMLA) in Patna. All allegations remain to be proven in court, and the accused is entitled to due process. The ED has stated that its investigation is complete.
