Jabalpur Smart City Ltd Suffers ₹1.3 Crore Loss After Pvt Bank Manager Fraudulently Converts Its Saving Account Into Current

Jabalpur (Madhya Pradesh): A case of financial irregularities has been reported from Madhya Pradesh's Jabalpur, in which Jabalpur Smart City Limited (JSCL) suffered loss of more than ₹1 crore interest income. The accused manager of a private bank prepared fake documents and changed their savings account to current account.

The change in account deprived the Jabalpur Smart City Ltd of Rs 1.3 crore interest income at the rate of 6.25 percent on their deposited amount of ₹20 crore.

The police have registered a complaint in the Madan Mahal police station and started investigating into the matter. The Administrative officer of JSCL has demanded strict action in this matter and has also raised questions on the role of the bank.

According to information, the JSCL had opened a savings account in a private bank on 24 March 2022 and deposited ₹20 crore in account of Kumar Mayank, Task Manager of a private bank branch in Vijay Nagar, Indore. At the time of opening the account, the JSCL was assured of 6.25% interest income on their deposit.

Mayank Kumar then prepared fake documents and submitted it in the bank and converted JSCL savings account to current account on July 5, 2022 and no prior information was given to JSCL. No interest is given on current account bank account, causing loss to institution.

When JSCL received the information, the administrative officer asked for the documents but the bank denied to provide complete account details and also failed to provide clarifications. The organisation had to suffer a loss of approximately ₹1.31 crore in this process.

Following this, the JSCL took it to the Madan Mahal police station and the police registered a case against the accused Mayank Kumar. According to the complaint, serious charges of breach of trust, preparing fake documents and financial embezzlement have been leveled against the accused.