Multi-crore embezzlement scam leaves Nohradhar bank customers in limbo

Customers of the Nohradhar branch of the HP State Cooperative Bank are growing increasingly frustrated as the bank has failed to return their deposits months after a multi-crore embezzlement scam surfaced in August 2024.

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Despite assurances from senior bank officials to reimburse depositors by September 15, 2024, only 13 customers have received Rs 1.82 crore to date. Many others are still waiting for clarity on when their money will be returned, leading to rising agitation among depositors.

Sandeep Negi, a Chauras village resident, shared that he had repaid a loan of Rs 22 lakh but has not been able to retrieve his fixed deposit receipt (FDR), which the bank claims is being processed in Shimla. Frustrated by the lack of a clear timeline, Negi is considering legal action.

The scam, involving the misuse of powers by former branch manager Jyoti Prakash, came to light after an FIR was lodged on August 11, 2024. Prakash allegedly created fake Kisan Credit Cards, transferring Rs 4.02 crore into these accounts and subsequently embezzling the funds. Locals believe the total embezzled amount could be closer to Rs 10 crore, as several people had deposited compensation from the Renuka multipurpose project.

Villagers are growing impatient as financial liabilities such as weddings and festivals remain unaddressed. “The trust in the bank is shattered. The management’s lax response has left us in financial distress,” said Inder Pal Thakur, a Nohradhar resident.

Customers are questioning the bank’s failure to file a chargesheet against the accused, who was granted bail after five months, and are demanding answers from the chairman. With senior officials refusing calls, customers are now skeptical about whether their money will ever be returned. Agitation is looming as depositors demand accountability and swift action.