Massive Fraud by Kotak Manager
A former branch manager of Kotak Mahindra Bank in Patna, named Sumit Kumar, has been accused of transferring ₹31.93 crore from a government account to fund illegal online betting. He used forged documents and fake KYC details.
How the Scam Worked
- He transferred large sums from the District Land Acquisition Officer’s account between 2020 and 2021, using forged signatures.
- Fake accounts were opened using real Aadhaar details of customers.
- Funds were sent to betting platforms such as Betway and 12 Bet overseas.
- Money was spread across 21 accounts linked to shell companies abroad.
Police and ED Action
- The Economic Offences Unit in Bihar registered a case after an internal audit uncovered the fraud.
- The Enforcement Directorate charged him with money laundering and arrested him in July 2023.
- Charge sheets were filed under PMLA after confirming the funds were used for gambling and laundering.
Consequences and Recovery
- Kotak Mahindra dismissed him following the findings.
- ED has provisionally attached assets worth around ₹1.66 crore linked to the accused.
- Investigations are ongoing to trace more people involved and recover the money.
This case exposes how insider access and weak checks let large public funds be diverted into gambling through misuse of KYC and forged documents.