3rd case of fraud in Sikkim State Bank, 2 officials arrested

Investigators recovered incriminating documents, including bank passbooks, passports, and fixed deposits amounting to several lakhs of rupees.

Sikkim Vigilance Police have arrested two more officials from the State Bank of Sikkim (SBS) that has been making the headlines for multiple cases of fraud scamming its customers.

The officials were arrested on Friday on charges of criminal conspiracy, cheating, misappropriation, and forgery.

This is the third instance of SBS employees being arrested in fraud cases in this year.
Following their arrests, the vigilance team searched residences of two arrested officials and offices in Gangtok.
The investigation revealed that the officials, along with a deceased lady customer who is the mother of an SBS official, allegedly cheated the Government of Sikkim. They dishonestly and fraudulently deposited six Demand Drafts (DD) amounting to approximately Rs. 30 lakhs into their personal bank accounts.

As per inputs, these DDs, issued by the State Bank of India, HDFC Bank, and SBS, were intended for the accounts Officer of the Pension Department, Government of Sikkim, as refunds for overpayments of pensions to six deceased pensioners. Instead of depositing these DDs into the government account, the officials deposited them into their personal accounts and withdrew the funds within a day or two.

Following a complaint lodged by the Pension Department, the Sikkim Vigilance Police registered an FIR against unknown officials of the Pension Department, SBS, and other unidentified individuals.
During the investigation, it was discovered that one of the drafts was deposited in March 2024 into the personal account of a female customer who had passed away in January 2017.

This deceased customer was the mother of one of the SBS officials, who involved in the fraud.
The investigation team seized the death certificate of the deceased customer from the Vigilance Department’s sleuths. Notably, the deceased customer’s account was still active and operational.

Investigators also recovered incriminating documents, including bank passbooks, passports, and fixed deposits amounting to several lakhs of rupees. The extent of the defalcation may increase as the investigation progresses.

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