Sumit Raj Sinha, the branch manager of the Development Credit Bank (DCB), Prabhadevi, issued two pay orders collectively valued at Rs26.82 lakh to 'advocate' Suman Ravindra Singh a year and a half back.
He then resigned, citing "better prospects elsewhere."
But a recent verification of expenses in Sinha's tenure, bank officials became suspicious of the pay orders. It was found that the orders bore forged signatures of Kushal Shetty, the bank"s vice-president.
A thorough check of the bank"s panel of advocates showed Suman was not a member of the panel. Further investigation yielded other instances of Sinha similarly defrauding the bank, the total amounting to Rs34.48 lakh.
The DCB officials then went to Suman"s Andheri (East) residence, where they learnt that she was Sumit Sinha"s wife. Thre they came to know that Suman was unaware of the fact that her husband had made her an advocate for DCB"s panel.
Sinha was appointed assistant manager in the bank"s recovery department in Jun 2007. His job was to recover loan amounts from customers. He was promoted as manager of the Prabhadevi branch in Apr 2008 but he resigned on the same year.
Sinha was arrested on Monday, Jun 28 in the case of forgery, cheating and criminal breach of trust after Shetty lodged a complaint.
The police recovered Rs15 lakh from Sinha, who has been remanded in police custody till Jul 2 by the Bhoiwada metropolitan magistrate"s court.