Coop Bank customers await return of their lost savings

More than two months after a large-scale embezzlement at the Nohradhar branch of the HP State Cooperative Bank came to light, over 75 customers are still awaiting the return of their lost savings. The bank management had earlier promised to refund the money by September 15, but despite this, only six customers have received their funds. The rest, amounting to several crores, remain in limbo.

The affected customers, many of whom had deposited compensation received after their land and homes were acquired for the Renuka Dam project, are now left devastated. These individuals had planned to invest the money into new ventures to rebuild their lives, but the embezzlement has left them stranded. The uncertainty surrounding the return of their savings has added to their distress.

Frustrated by the inaction of the bank management, the Hattee Samiti Ekta Manch has organised a meeting of all affected customers on October 25 at the Nohradhar guest house. The goal of the meeting is to devise a collective strategy and submit a final memorandum to higher authorities. Inderpal Thakur, one of the affected customers, stated that despite the promises made, only six depositors have been reimbursed, and many others are still waiting.

The situation is particularly dire as the festive season approaches, with Diwali just around the corner. The affected villagers, spread across 15 panchayats, have threatened to escalate their protest if their funds are not returned by the festival. They have vowed to organise a massive rally in Nohradhar and are even considering legal action to ensure every customer receives their money back.

Adding to their woes, the upcoming wedding season is also placing additional financial pressure on these families. Many are in desperate need of funds to meet their social obligations, and the delay in returning their savings has left them struggling.

Despite the gravity of the situation, the state government has not taken any decisive action. Nearly three months after the fraud was discovered, no heads have rolled, leaving the affected villagers feeling abandoned.

The embezzlement, initially estimated at Rs 4.02 crore, was reportedly carried out by the branch’s former manager, Jyoti Prakash, who allegedly opened fake Kisan Credit Cards and defrauded account holders. An FIR was lodged by district manager Priyadarshan Pandey on August 11, but sources now indicate that the total amount embezzled could be closer to Rs 10 crore.

Bank officials have offered little reassurance. Managing Director Shravan Manta confirmed that claims of Rs 1.90 crore had been filed by 12 customers, and Rs 78 lakh had been returned to six of them. He stated that the remaining claims are still under verification.

Manta assured that the bank would settle all claims within a week and that investigations, including a forensic audit, were ongoing to determine whether the fraud was the result of a larger conspiracy. Meanwhile, 17 employees identified for negligence have been transferred, though the villagers remain unconvinced by these actions.

Former manager ‘behind’ embezzlement

• The embezzlement, initially estimated at Rs 4.02 crore, was reportedly carried out by the branch’s former manager, Jyoti Prakash, who allegedly opened fake Kisan Credit Cards and defrauded account holders
• An FIR was lodged by district manager Priyadarshan Pandey on August 11, but sources now indicate that the total amount embezzled could be closer to Rs 10 crore
• Despite the gravity of the situation, the state government has not taken any decisive action. Nearly three months after the fraud was discovered, no heads have rolled, leaving the affected villagers feeling abandoned