Key accused in Rs 21-crore UP Cooperative Bank scam arrested

Gonda (UP), Jan 18 (PTI) Uttar Pradesh Police arrested the main accused in an alleged scam worth Rs 21 crore in the Uttar Pradesh Cooperative Bank in Gonda district on Sunday, an official said.

According to the police, the accused was identified as Pawan Kumar Pal, former branch manager of the bank.

The arrest followed revelations of large-scale irregularities that came to light during a special audit conducted by a chartered accountant and an internal inquiry by the bank, officials said.

Pal allegedly formed a syndicate with some employees and certain account holders to irregularly disburse loans, Additional Superintendent of Police (East) Manoj Kumar Rawat said.

While disbursing loans, he ignored Reserve Bank India guidelines and the bank's internal policies, leading to the misappropriation of Rs 21.47 crore between December 2021 and June 2025, Rawat said.

The accused siphoned off funds in a planned manner, police said, adding that he not only used his own bank account but also those of his mother, wife and son.

An FIR was lodged at Kotwali Nagar police station on the complaint of Assistant General Manager Bhuvan Chandra Sati on January 13, naming three former branch managers, a former cashier and 12 account holders.

Rawat said that since the case involves a major financial scam, it is being reviewed at a higher level.

Police arrested Pal from the Mankapur bus stop and produced him before a court, which sent him to jail, the officer said.

Efforts are on to arrest the remaining accused, the ASP said. PTI COR ABN SHS