Fraud case against Yes Bank employee

Tuesday, December 29, 2009

Shruti Panchal, an employee of Yes Bank was a relationship manager in the bank's wealth management division. She with the help of other people, cash in money from one its client’s Rajesh Rathi mutual funds worth about Rs 66 lakh, leading to a loss of about Rs 34 lakh to the client.

In 2007 along with her superior approached Rajesh Rathi, a MD of Gandhinagar-based MGD Electronics, and suggested him to invest in mutual funds through the bank's wealth management services. He agreed and a total of Rs 1 crore was invested in four funds in December 2007. The mutual funds were in the name of the company.

When Rajesh came to know about the fraud he approached the police. But police refused to register a case. Then MGD Electronics moved the court. In view of this Gandhinagar court passed an order in a case of alleged forgery against Shruti Panchal. She had forged the signature of Rajesh Rathi, also prepared a duplicate company seal, changed bank mandates with forged signatures and the seal, and cash in money invested in mutual funds worth about Rs 66 lakh.

The court has also instructed the police to investigate other unnamed bank officers as there is possibility that she might have committed fraud with the help of other people. The court stated that people keep their money in banks as they find it safe, but due to such cases people can loose confidence in banks.

MGD Electronics has also filed a case against Yes Bank in consumer court. The next hearing of the case will be held on January 19.
  by J. Prasad