- Tirumala Cooperative Urban Bank Ltd., based in Hyderabad, has filed a formal complaint against Equitas Small Finance Bank Limited and its staff, alleging a fraud amounting to 2.45 crore through the misappropriation of public funds.
- The complaint, submitted to the Central Crime Station (CCS) by Tirumala Bank’s CEO VV Sobhanadri on January 27, outlines claims of criminal breach of trust and fraudulent misrepresentation by Equitas, specifically involving its branch manager G Hariprasad.
- Tirumala Bank, which has been in operation since 1998, reportedly invested surplus funds as deposits in various scheduled banks, including Equitas, since 2016.
- These investments were made based on Equitas’s promises of higher interest rates and timely repayments.
- Between October and December 2024, following Hariprasad’s instructions, Tirumala Bank transferred 3.5 crore to Equitas’s accounts at the Bank of Baroda’s Tarnaka branch and Canara Bank’s Sainikpuri branch.
Tirumala Cooperative Urban Bank Ltd., based in Hyderabad, has filed a formal complaint against Equitas Small Finance Bank Limited and its staff, alleging a fraud amounting to 2.45 crore through the misappropriation of public funds.
The complaint, submitted to the Central Crime Station (CCS) by Tirumala Bank’s CEO VV Sobhanadri on January 27, outlines claims of criminal breach of trust and fraudulent misrepresentation by Equitas, specifically involving its branch manager G Hariprasad. An FIR has been registered.
Tirumala Bank, which has been in operation since 1998, reportedly invested surplus funds as deposits in various scheduled banks, including Equitas, since 2016. These investments were made based on Equitas’s promises of higher interest rates and timely repayments.
Between October and December 2024, following Hariprasad’s instructions, Tirumala Bank transferred 3.5 crore to Equitas’s accounts at the Bank of Baroda’s Tarnaka branch and Canara Bank’s Sainikpuri branch. Equitas confirmed receipt of these funds, and repayments were either made or renewed as deposits matured. However, when a deposit of 25 lakh matured on January 13 this year and a repayment request was submitted, delays began to occur, according to the complaint.
Despite numerous follow-ups, Hariprasad attributed the delays to holidays and staffing issues. Further communication with Equitas’s regional office and senior officials revealed that only 1.05 crore of the deposit was recorded in Equitas’s records, leaving 2.45 crore unaccounted for. Attempts to reach Hariprasad were unsuccessful, as his phone was turned off, the complaint noted.
Investigations by Tirumala Bank indicated that the transferred funds were deposited into accounts under the name ‘EQIT SFIN’ instead of ‘Equitas Small Finance Bank Limited.’
The complaint highlighted that the discrepancy in account names, which had been flagged by IDBI Bank, was ignored by both Bank of Baroda and Canara Bank. The funds were deposited into a newly opened account belonging to an individual named T Om Prakash.
Tirumala Bank stated that Equitas, in collaboration with others, engaged in a coordinated fraud that involved a criminal breach of trust.