Ex-Canara Bank manager, 9 employees dismissed for Rs 14-crore SHG loan fraud in TN's Theni

THENI: A former Canara Bank branch manager and nine other employees have been dismissed from service following the detection of an alleged Rs 14-crore financial fraud involving fabricated women's self-help group (SHG) loan accounts in the district, police said.

The fraud was allegedly executed across two branches of the bank in the district where the prime accused, identified as Karthik, had served as the branch manager.

According to officials, irregularities worth Rs 12 crore were initially detected at the Odaipatti branch near Chinnamanur through unauthorised transactions. A subsequent internal audit by higher authorities revealed that another Rs 2 crore had been misappropriated using a similar modus operandi at the Koolayanur branch, where Karthik had previously worked.

An internal investigation confirmed that Karthik had allegedly forged documents and created fake profiles to illicitly sanction revolving funds and loans earmarked for women's self-help and self-employment groups.

Suspecting a larger conspiracy, bank authorities expanded the probe and found nine other bank employees allegedly colluding in the multi-crore scam. All 10 personnel, including Karthik, have been dismissed from service, officials added.

Following a formal complaint lodged by Canara Bank Regional Manager Indira, the Theni District Superintendent of Police has initiated a comprehensive criminal investigation into the matter.

Police are currently verifying bank records to ascertain the exact extent of the impact on legitimate account holders, including local farmers, traders, and daily wage labourers who form a major part of the bank's customer base in the region, sources said.