Yes Bank employee accused of $137,500 fraud
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Yes Bank employee accused of $137,500 fraud

By SiliconIndia   |   Wednesday, 30 December 2009, 09:22 Hrs   |    16 Comments
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Yes Bank employee accused of $137,500 fraud
Mumbai: The Gandhinagar court has ordered further investigation against Shruti Panchal, an employee of Yes Bank, who allegedly forged the signature of one of its clients, prepared a duplicate company seal, changed bank mandates with forged signatures and the seal, and redeemed money invested in mutual funds worth about $137,500, leading to a loss of about 34 lakh to the client. She worked as a Relationship Manager in the bank's wealth management division

As reported by the Economic Times, the court has also ordered investigation on other unnamed bank officers since it appeared that the fraud was committed by Shruti with help from other people. The court's contention was that since people keep their money in banks, such cases can lead to loss of client confidence.

The case relates to Gandhinagar-based MGD Electronics, whose MD, Rajesh Rathi, was approached by Shruti and her superior in 2007 to invest in mutual funds through the bank's wealth management services. The company invested a total of 1 crore in four funds in December 2007.

MGD Electronics moved court after police refused to register a case. The court subsequently directed police to investigate the matter. MGD Electronics has also filed a complaint in consumer court against Yes Bank. The next hearing for the case is on January 19.

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Reader's comments(16)
1: ashar,you have hit the nail on the head.Whatever you have heard is totally and 100% TRUE.He is a fraud and this is his way of extortion of money in the form of settlement.He is fighting a divorse case with his wife and probably needs the money to pass it her. google with his name will get more information.Someone needs to investigate and inform the troubled party of his intentions
Posted by:smart alec - 14 May, 2010
2: i am very much sorry but the fact is some what different. This lady is not alone and she had not done this intentionally. Investment advisory is not the bank's job for that mutal fund houses are there i dont understand why RBI give permission to these bank to sell products like Mutal fund and insurance their job is to provide banking services like current account, saving account, deposit account and loans. anyway when ever any clint redeem his fund from a perticular scheme of the mutal fund in this case it is huge amount so fund house give a call back to customer and confirm all the details and also a report of redemption is sent to the concern branch manager of that bank so this mean that the branch manager and the fund house had this in knowledge that the customer is not giving the redemption but as it is the sales pressure he also got involve with shruti
Posted by:Nisha - 23 Mar, 2010
3: Fat is not the anti-chain, is a lonely.uggs on sale Wear is not UGG. Is lonely. Winters are not so lonely.
Posted by:uggs online - 04 Jan, 2010
4: Management nahi great haath ki safai skills she should have been appointed as Safai Karmachari by the HR. Although HR has got real a safe explanation To human is to err. Remember Work is God n Health is Wealth
Posted by:Gods must be crazy - 02 Jan, 2010
5: Employees in financial institution needs to have more integrity because they act in a fiduciary capacity so RBI should frame guidelines to deter such type of frauds and such employees picture be published in media and newspapers to inform the public at large from such scammers.
Posted by:Ashok Kumar Aggarwal - 30 Dec, 2009
6: If an Indian is doing a small mistake then it becomes headache for everyone, but a terrorist (ajmal kasab)who did such a big mistake being sustained by our government. Hats-off Shruthi...instead of knowing the consequences as RSM you dared to do it...I am damn sure tht evn your case file gonna messed up with other files as a RAT FOOD
Posted by:Jerry - 30 Dec, 2009
Mistake can be careless or negligence with or without knowledge and if with knowledge it is not pordonable.
Ashok Kumar Aggarwal Replied to: Jerry - 30 Dec, 2009
8: Well if she is not alone who will be with her no one can say that.
Posted by:raniee - 30 Dec, 2009
9: I fully agreed with all of you guys of your comments on that can anybody ask her why she done such Job I am sure hes will not alone in this case.
Posted by:Younus KSA - 30 Dec, 2009
10: Employees doing this kind of activity should be immediately sacked and make sure that they wouldn't get job anywhere else in our country, then they will come to know the real pain. People like these should he either hanged to death or should be jailed for life term so that no one else would dare to repeat this. Bloody scoundrels, B----
Posted by:vinodk - 30 Dec, 2009
iam Sorry vinod,I disagree we need to be more sure b4 saying all this.You simply confirmed that such a fraudelent can be done by this lady alone..I cannot imagine this,may be we shall think it different angle that she has been dragged into this situation due to present CORPORATE atmosphere?may be her intention would have been soemthing else which ended in this way & when problem occurs everyone wants put the burden into ones head that you & i well knows,,,probably the real culprit would be behind the screen laughing at these dramas....Lets give them time..Wait till the conclusion comes out...
Prasath Nair Replied to: vinodk - 30 Dec, 2009
Well! Well! Well This guy of MGD Electronics is at it again.Has anyone looked into his past? Probably he is playing a fast one,like always.Happy investigating guys
srikant Replied to: Prasath Nair - 05 Jan, 2010
if it is true then the staff should be taken to task but this smart alec of MGD Electronics is involved in several cases.heard he forged signatures of his contractor in mumbai.he is involved in some major bribery matter in rajasthan & is in big time litigation with his family.can`t trust a slimy fellow like him he can do anything for money & is capable of dramatising this whole matter of bank fraud.Investigate DEEPLY.
ashar Replied to: srikant - 06 Jan, 2010
I fully agree with you Vinod, but the problem is the 'Outdated Law in our country'which takes such Economic offences lightly. The fact that the police refused to register a case of this magnitude, clearly speaks about our system, which has gone to dogs, hence such white-collared people are taking advantage. Such rogues have money to bribe and they get away easily. In court this matter will go on & on, Shruti will get bail after the court order has passed the order.She will then again 'Appeal' to the higher court. Its high time our laws change,otherwise 'Cheats will continue to prosper in our country'. I know of such 'Cheats' in the stock market, but SEBI does not taken action. SEBI only maintains in its records "Penal Action Will Be Taken" - that's all.
Sunil Coelho Replied to: vinodk - 30 Dec, 2009
No conclusion will come out except that the people involved in this case will get a bail from court by bribing the lawyers or the company will ask the people to resign the job and they will come out clean. Prasanth do u think the real culprit will be executed, i don't think so bcoz and we all know very how good our Justice, Lawyers and the Corporate cultures are.. When the bigger scams are happening/happened in the past i.e Harshad mehta case, 93 bomb blasts, recently Madhu koda case, Reddy brothers mining case. I would like to know where is the conclusion and where is the result for the above cases. Unless the strict actions like executing them or jailing them for a life time these people will repeat the same and will go on.
In my view the Chinese or Gulf countries example should be taken when dealing with frauds or scams or watever the hell case it may be then i can hope that everyone does his job sincerely and let our country prosper. Waiting for the conclusion.........
vinodk Replied to: Prasath Nair - 30 Dec, 2009
16: Why these people do this type of thing? Don't they get enough salary?
Posted by:Tannuchandra S - 30 Dec, 2009