IndusInd Bank Staff Arrested for Misappropriating 7.33 Crore

Coimbatore: The city crime branch police on Friday arrested the deputy branch manager and two cashiers of IndusInd Bank’s Coimbatore branch and three customers for misappropriation of 7.33 crore. Police also have formed a special team to arrest 10 more accused in the case.

According to an investigation officer, the six were nabbed based on a complaint that Z Mohamed Ziauddin, 46, of Tristar Towers on Avinashi Road, lodged with city police commissioner V Balakrishnan on Friday.

Marketing head of IndusInd Bank on Avinashi Road, Ziauddin in his compliant said they had conducted an internal auditing based on a customer’s complaint and found that the deputy branch manager, Jagan Palani, 38, of Marutham Hillside apartment on Thondamuthur Road at Vadavalli, had connived with cashiers Nivedha, 23, of Coimbatore, and Sheik Ashraf, of Pollachi, and deposited 7.33 crore in the bank accounts of 12 IndusInd Bank customers and an ICICI Bank customer from June 2023 to January 5, 2024, without receiving money from the 13 and making entry into the two banks’ systems, the officer said.

“As per the complaint, they also carried out various transactions. Nivedha had paid 25 lakh to Kulothungam, an ICICI Bank customer, without making an entry in the bank system,” the officer said.

He said the misappropriation of funds was done through various irregularities in financial transactions, unauthorized withdrawals and manipulation of bank records. “Three IndusInd Bank staff members and 13 customers were involved in the misappropriation of the bank fund.”

Based on the complaint, the city crime police registered a case against all the 16 under sections 120 B, 409, 420 and 477 of the Indian Penal Code on Friday and arrested Palani, Nivedha and Ashraf, along with three customers – Kulothungan, Kennedy and Harikrishnan. They were produced before a judicial magistrate, who remanded them in judicial custody the same night.

The officer said the arrested six had given contradictory statements regarding the transaction and withdrawal of a huge amount. “They will be taken into our custody for further investigation. The remaining 10 customers will be arrested soon.”

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