Pradhan writes to ED for parallel probe on SBS embezzlement case

KUNAL RAI

GANGTOK, : Social activist Nawin Kiran Pradhan has written to Enforcement Directorate (ED), Sikkim seeking an investigation on the alleged Rs. 69 crores embezzlement reported in the State Bank of Sikkim (SBS).

Pradhan has also sent copies of his letter to the Prime Minister, Chief Election Commissioner, RBI Gangtok, and Directorate of Revenue Intelligence, New Delhi.

Speaking with SIKKIM EXPRESS on Monday, Pradhan asserted that the embezzlement of Rs. 69 crores from the SBS by three accused senior SBS officials is a serious case of financial fraud and money laundering.

Moreover, the involvement of political individuals and institutions cannot be ruled out, as it is unlikely that such a grave act could have been committed by few bank employees without the support and patronage of political leaders, said Pradhan.

Considering this serious issue, I have requested the ED to initiate a thorough and prompt investigation and the individuals found guilty be punished as per law, said Pradhan.

A CID case has already been registered against the three SBS officials following the complaint made by the State-run bank. As per the bank authorities, much of the defrauded amount has been recovered, and efforts are on to recover the remaining amount.

Pradhan lauded the efforts of the SBS managing director and entire bank management to trace the embezzled money while taking necessary steps.

He pointed out that the SBS, being a State-run bank, does not fall under RBI regulations. There have been issues of non-payment of loan amounts to the bank and the State government in 2022 had amended the SBS loan recovery Act but we are unaware of the recoveries made by the bank, he said.

Pradhan advocated that the SBS should come under the RBI so there is transparency and the bank survives without any such activities.

“The reason why I have written to ECI is that the Model Code of Conduct is in place in the State following the election. When the embezzlement was unearthed the Model Code of Conduct existed. Even the ECI has to initiate investigation through agencies like CBI or ED. We demand the Central agencies like ED, CBI, DRI and ECI also to initiate parallel investigation apart from CID Sikkim Police too,” said the activist.