A massive bank fraud worth Rs 200 crore has come to light in Guwahati, leading to arrest of Chief Managing Director (CMD) of a private bank. accused, Nityananda Bhagawati (39), allegedly lured investors with promises of extraordinary monthly returns and used their deposits to trade in equities, ultimately orchestrating one of region’s largest financial scams.
Fraud Unfolded
Initial Operations
Established four years ago in Narengi, Guwahati, Assam Gramiya Nidhi Bank, led by Bhagawati, initially gained trust of its customers.
- Promises Made: Customers were assured 12% monthly returns on their savings, a rate significantly higher than market standards.
- Target Audience: Bhagawati employed agents across Assam to convince small business owners, daily wagers, and rural investors to deposit their savings.
- Investment Range: Customers deposited sums ranging from Rs 50,000 to Rs 5 lakh.
For first few years, bank fulfilled its commitments, paying promised returns punctually, thereby creating a sense of trust among its investors.
Collapse
Approximately a year ago, payouts abruptly stopped. Bhagawati offered various excuses for delays, ranging from technical issues to market volatility. As suspicions grew, several customers lodged complaints with Noonmati police station, leading to an investigation.
Arrest
Noonmati police launched a case under Sections 406 (criminal breach of trust) and 420 (cheating) of Indian Penal Code (IPC) and initiated a state-wide search for Bhagawati. Despite evading authorities for nearly a year, CMD was finally apprehended on Friday from Beltola, Guwahati.
Details of Investigation
- Confession: During interrogation, Bhagawati admitted to using investor funds to trade on online trading platforms.
- Arrest Location: Beltola, after tracking his movements for several months.
- Funds Misused: Investigators revealed that entire Rs 200 crore was diverted into high-risk equity trades.
Impact on Investors
fraud has left hundreds of investors in financial ruin. Most of victims were small business owners and daily wagers who had deposited their life savings in bank, believing in promised returns.
| Category | Impact |
| Investors | Over 500 individuals affected. |
| Deposit Range | Rs 50,000 to Rs 5 lakh per person. |
| Financial Loss | Total scam worth Rs 200 crore. |
emotional and financial toll on these investors has been immense, as many relied on these funds for critical life expenses.
Police Actions and Further Investigations
Authorities are working to unravel full extent of scam and ensure justice for victims.
Ongoing Investigations
- Tracing Funds: Investigators are tracking flow of misappropriated funds to determine whether they were diverted to other accounts or used for personal gain.
- Identifying Accomplices: Police are also probing potential involvement of other employees or agents in fraudulent activities.
- Asset Recovery: Efforts are underway to recover investor money, though process is expected to be lengthy and complex.
Relief for Victims
arrest has provided a sense of relief to affected investors, but financial recovery remains uncertain. Police have assured that they are prioritizing measures to return as much of stolen funds as possible.
Reactions to Scam
Public Outcry
scam has triggered widespread outrage, with investors demanding stricter regulations to prevent similar frauds in future.
Authorities’ Assurance
Police have reiterated their commitment to bringing justice to victims and holding all involved parties accountable. “This is a grave violation of trust. We will ensure a thorough investigation and recovery process,” said a senior police official.
Summary of Scam
| Detail | Information |
| Accused | Nityananda Bhagawati (CMD of Assam Gramiya Nidhi Bank) |
| Location | Narengi, Guwahati |
| Total Fraud Amount | Rs 200 crore |
| Number of Victims | Over 500 investors |
| Arrest | Beltola, Guwahati |
| Charges | IPC Sections 406 and 420 |
| Method of Fraud | Promised 12% monthly returns; diverted funds to equities |
| Current Status | CMD in custody; investigation ongoing |
Lessons and Preventive Measures
For Authorities
- Stronger Oversight: Regulatory bodies must ensure stringent checks on financial institutions promising unusually high returns.
- Public Awareness: Initiatives to educate people about financial scams and red flags.
For Investors
- Verify Credentials: Always verify legitimacy of financial institutions and their promises.
- Beware of High Returns: Promises of unrealistically high returns should be treated with caution.
- Spread Investments: Avoid putting all savings into one financial institution or scheme.
Conclusion
unearthing of Rs 200 crore bank fraud in Guwahati serves as a stark reminder of need for vigilance in financial dealings. While arrest of CMD Nityananda Bhagawati brings some hope to affected investors, road to financial recovery is fraught with challenges. This case underscores importance of strict regulatory frameworks and public awareness to prevent such scams in future.
Disclaimer
This article is based on publicly available information and statements from law enforcement authorities as of December 7, 2024. Readers are encouraged to verify details and exercise caution in financial investments.
