Jammu Coop Bank Fraud: Rs 1.77 Crore Siphoned Off, Employees Suspended; Probe Underway | Kashmir Life

SRINAGAR: A major financial fraud has surfaced in the Jammu Central Cooperative (JCC) Bank Ltd, with employees at the Head Office allegedly siphoning off crores of rupees from depositors’ accounts through fraudulent digital transactions, sources told Jammu newspaper Daily Excelsior.

According to official sources, embezzlement amounting to approximately Rs 1.77 crore has so far been detected, though the figure is expected to rise significantly as internal inquiries by the bank and preliminary investigations by the Crime Branch continue. The total amount involved could reach between Rs 3 crore and Rs 5 crore once all suspicious transactions are examined.

Soon after the fraud came to light, three employees were placed under suspension, while a formal complaint was lodged with the Crime Branch for further investigation and necessary action. An FIR is likely to be registered shortly following initial verification.

Sources said the fraud involved misuse of official access, manipulation of banking data, and unauthorised NEFT/RTGS transactions. Funds were allegedly transferred from customers’ personal and savings accounts to accounts belonging to family members and relatives of the accused employees in other banks.

The first major instance of the fraud reportedly came to light on January 17, 2026, when the Branch Head of Shastri Nagar in Jammu flagged serious irregularities. A transaction of Rs 2.95 lakh dated January 16 was reflected in records without any corresponding physical voucher, raising suspicion.

Further scrutiny revealed that employees in the IT section at the Head Office allegedly exploited their access privileges. They were responsible for enabling user access for branch employees but are accused of disabling such access without the knowledge of branch staff and diverting funds through digital means.

The fraud is not limited to a single branch. Apart from the Gandhi Nagar branch, irregularities have reportedly been detected in around 10 branches, including Sainik Colony, Talab Tillo, Bhadarwah, and Gandoh.

The suspended employees have been identified as Rohit Sharma, Bhupinder Singh, and Amit Gupta. While the two Banking Associates are alleged to have been directly involved in siphoning off funds, with Rohit Sharma described as the mastermind, the Assistant Manager-level officer has been accused of dereliction of duty.

Sources further disclosed that the bank management has informed the Reserve Bank of India and the National Bank for Agriculture and Rural Development about the fraud. As per regulatory norms, banks are required to promptly report such incidents and initiate parallel action with law enforcement agencies.

The development has raised concerns over the safety of depositors’ funds in the bank, which is estimated to hold deposits worth between Rs 1300 crore and Rs 1400 crore. Officials indicated that any adverse regulatory or administrative action could potentially impact depositor confidence.

The JCC Bank is currently managed by a professional Board of Directors headed by the Administrative Secretary of the Cooperative Department, with a Managing Director from the senior JKAS cadre. Investigations into the fraud are ongoing.