Bank of India's Suspended Officer Arrested by ED in Rs16.1 Crore Fraud Targeting Senior Citizens, Minors

Moneylife Digital Team 22 September 2025

Economy & Nation

The Mumbai zonal office of the directorate of enforcement (ED) has arrested Bank of India's suspended staff officer Hitesh Kumar Singla in connection with a Rs16.1 crore fraud that targeted vulnerable account-holders, including senior citizens, minors and deceased customers.

Mr Singla, who had been absconding for months, was apprehended on 17th September at Ahmedabad junction railway station while travelling on the Ujjain–Veraval Mahamana Express. According to ED, he had been frequently changing seats and coaches to avoid detection. The agency says his arrest followed specific intelligence inputs and technical surveillance.

He was produced before the special court under the Prevention of Money Laundering Act (PMLA), which granted the ED seven days’ custody.

ED's investigation, initiated on the basis of a first information report (FIR) filed by central bureau of investigation (CBI), revealed that between May 2023 and July 2025, Mr Singla abused his official position to fraudulently close term deposits (TDs), public provident fund (PPF) accounts, senior citizen savings scheme (SCSS) accounts, savings accounts and current accounts without authorisation.

The proceeds, investigators say, were diverted to his personal accounts in State Bank of India (SBI) and later layered through multiple transfers to conceal the money trail.

By this method, Mr Singla defrauded as many as 127 customers, carefully selecting vulnerable categories such as senior citizens, minors, deceased account-holders and dormant or inoperative accounts to minimise chances of detection.

The agency alleged that the fraud not only caused a loss of Rs16.10 crore to Bank of India and its customers but also damaged the Bank’s reputation and eroded public trust.

CBI had earlier booked Mr Singla under Section 409 of the Indian Penal Code (criminal breach of trust), Section 316(5) of the Bharatiya Nyaya Sanhita, and Section 13(2) read with Section 13(1)(a) of the Prevention of Corruption Act, 1988.

Following the arrest, ED conducted searches at the premises of one of Mr Singla’s associates under Section 17 of PMLA. Officials confirmed that further investigation is in progress to trace the money trail and identify other possible beneficiaries or accomplices.

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