ED Seizes Rs 1 Crore Assets in Rs 16.1 Crore Bank Fraud Case

Mumbai: The Enforcement Directorate (ED) has attached properties, including bank balances, collectively worth over Rs 1 crore, in connection with the embezzlement of Rs 16.1 crore from 230 customer accounts of Bank of India's Bandra branch by staffer Hitesh Kumar Singla.

Officials alleged that Singla diverted funds with the help of mule accounts and later lost a large portion of the defrauded money in futures and options trading and online gambling. The attached assets include a plot of land worth around Rs 11 lakh and bank balances in mule accounts linked to betting apps on which Singla lost parts of the defrauded sums.

ED arrested Singla last September at Ahmedabad station after a dramatic chase. He has been lodged at Arthur Road jail under judicial custody. ED officials said Singla fraudulently closed customers' term deposits, public provident funds, senior citizen savings scheme accounts, and savings and current accounts without any authorization, and transferred the money to his personal savings accounts and mule accounts. It is believed Singla executed the fraud over a period of time.

The case has sent shockwaves through the banking community, highlighting the need for stricter internal controls and monitoring systems. Bank of India has since taken steps to prevent such incidents in the future, including enhancing its fraud detection mechanisms and conducting thorough audits of its branches.

The ED's action is a significant step in recovering the defrauded funds and bringing the perpetrator to justice. The agency is continuing its investigation to trace and recover the remaining amounts and ensure that all those involved in the fraud are held accountable.