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Bank manager held for siphoning off Rs.120 million Wednesday, May 9, 2001

Ahmedabad: Police have arrested a senior bank manager after he was found to have siphoned off Rs.120 million from one of the bank's branches and deposited it in the accounts of his relatives.

Rohit Mehta, a senior branch manager of the Industrial Development Bank of India (IDBI) in Surat, about 255 km from here, was arrested by police on charges of siphoning Rs.120 million from the bank's branch in Ahmedabad, Gujarat's principal city.

O.N. Majumdar, a police inspector of the city's Navarangpura area, said Monday that Mehta was charged with transferring money from a general account to the accounts of his wife and uncle. Entries recorded between July 18, 2000, and April 30, 2001, aroused suspicion. The bank eventually realized the money had been siphoned off from interest payable accounts on which Mehta was the final authority. Pramod Vaidya, the regional head of IDBI, lodged the complaint against Mehta.

According to the complaint, Mehta used to transfer the amount credited against the interest on the deposits into the accounts of his wife and uncle. He used to withdraw the amount later.

Mehta, however, told police that he had lost most of his money in the share market and this had tempted him to commit the crime.

The scandal is the second involving a bank in Gujarat. Earlier, hundreds of depositors burnt their fingers when the Ahmedabad-based Madhavpura Mercantile Cooperative Bank (MMCB) closed operations after suffering losses of more than Rs.12 billion after its chairman Ramesh Parikh had illegally extended a loan to stock broker Ketan Parekh, the prime accused in a major stock market scandal that took place in March.

 

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