Registrar orders immediate removal of Amritsar Coop Bank director for fraud

Umesh, Joint Registrar, Cooperative Societies, Jalandhar Division, exercising powers of the Registrar, Cooperative Societies, Punjab, has held Arinderbir Singh Walia guilty of committing fraud with Amritsar Central Cooperative Bank Ltd by securing a housing loan on a non-existent plot and failing to repay it fully. In an official order issued under Section 27(1) of the Punjab Cooperative Societies Act, 1961, Walia has been removed from the directorship of the Bank with immediate effect.

The order, a copy of which is with Amritsar Tribune, emphasised the seriousness of the fraud and the resulting loss of moral authority, stating: “In view of the gravity of the fraud and the complete loss of moral standing of the individual concerned, it is imperative to take decisive action to stem the rot and restore institutional faith.”

The investigation revealed that Walia, in connivance with his father, Satwinder Pal Singh Walia—an employee of the same bank—secured a house-building loan of Rs10 lakh. Disbursed in three installments beginning October 16, 2017, the loan was obtained on the basis of fabricated documents tied to a non-existent property. The fraudulent activity persisted even after Walia was elected Director and later Chairman of the Bank on December 15, 2021.

Though the loan account was officially closed on March 6, 2025, officials stated that “repayment cannot erase the fundamental deceit of obtaining a loan against a non-existent property.” The order categorically termed this act a criminal offence and a case of “persistent default and moral misconduct” under Section 27(1) of the Act.

Walia was served a show cause notice and given 15 days to respond. He submitted his written reply on September 25, 2025, and also appeared in person before the Joint Registrar on October 1, 2025. However, his explanations failed to counter the evidence gathered during the inquiry.

A report submitted by the District Manager (letter number 20610, dated March 4, 2025) stated that the inspection team was unable to locate the plot or any construction at the claimed site. Further investigations were carried out by the Deputy Registrar, Cooperative Societies (DRCS), Amritsar, who reviewed the bank’s documents and consulted the Deputy Commissioner, Amritsar.

According to the official report (Letter No. DRA/772, dated October 3, 2025), the plot mentioned in the loan documents—Plot No. 146 min/147 (D Block), Khasra Nos. 980 and 981, Sub-Urban Taraf Mahal-2, Abadi Kanwar Avenue Phase-2, Amritsar—was found to be non-existent based on land revenue records. The DC’s office confirmed that the property detailed in Vasika No. 2020 dated June 8, 2017, does not exist in the specified location.

The DRCS report also pointed out that the bank employees responsible for property verification failed in their duties and provided incorrect assessments prior to sanctioning the loan.

Concluding the matter, Umesh remarked that such fraudulent acts by someone in a position of power compromise public trust and the integrity of cooperative institutions. Hence, Walia’s removal was deemed necessary to uphold transparency and accountability.