Bank of Baroda Employees suspended for providing Fake FDs to 56 customers

Bank of Baroda Udaipur Rajasthan: A scam worth Rs 1.19 crore has been discovered at a Bank of Baroda branch in Nathdwara. This scam affected 56 customers who were given fake fixed deposit receipts (FDRs) by the bank’s former manager, Abhishek Aggarwal, and other employees, along with individuals from India First Insurance. The bank is now replacing the fake FDRs with genuine ones for the affected customers. Abhishek Agarwal has been transferred to a new branch in Bhilwara, and several other employees have been suspended as part of the bank’s efforts to handle the situation.

Bank of Baroda is an Indian Multinational public sector bank headquartered in Vadodara, Gujarat. It is the second largest public sector bank in India after State Bank of India.

So far, 42 affected customers have received new legitimate FDRs. Interestingly, the Shrinath Temple Trust of Nathdwara also holds a significant FDR of Rs 600 crore with this bank.

To protect the bank’s reputation, the insurance company involved in the scam has deposited the fraudulent amount into customers’ accounts. However, the bank has blocked this money from being used until the situation is resolved.

Investigations have revealed that a total of 94 fake FDRs worth Rs 1.50 crore were given to 62 account holders. The current branch manager, Sureshchandra Mishra, has admitted to irregularities involving an employee of India First, the third-party company connected to the scam.

Additionally, Om Jumnani, a representative of India First Insurance, filed a complaint alleging that the bank manager instructed the transfer of funds to accounts belonging to his relatives.

The scam involved using fake computer-generated FDR receipts with the bank’s seal and an official’s signature. The manager misused signed vouchers meant for FDs to divert funds into unauthorized accounts, resulting in transfers to accounts in Kolkata and Ranchi.

Jumnani used to sit in the bank and advise customers about FD and insurance. When a customer agreed to an FD, they were sent to the manager. This is where the problem started. The manager asked Jumnani to get him to sign the voucher to withhold the amount for the FD. After signing, the bank could use that amount for making FDs, but the manager would get the amount transferred to Jumnani’s and his acquaintances’ accounts.

Then, the money was transferred from Jumnani and his acquaintances to three accounts in Kolkata and one in Ranchi. The manager would print the FDR bond on plain paper from the computer and give it to the customer with his signature, while the bank usually prepares a separate bond for this. On March 6, when the auditor discovered missing money from customers’ accounts, Jumnani realized what was happening.

He complained to the Additional Director General in the Special Operations Group (SOG) on April 2. It has been said that this was Jumnani’s first job, so he was not aware of the FD process, and the scam took place under the instruction of manager Abhishek. After the audit, on March 12, the insurance company’s regional manager Saurabh Nagar, area business head Sudhanshu Gupta, and the legal team from Mumbai also investigated the matter.