Sumit Kumar, the former branch manager of Kotak Mahindra Bank in Boring Road, Patna, was detained by the Directorate of Enforcement (ED) on July 10, 2023, for violations of the Money Laundering Act of 2002 (PMLA) in the Kotak Mahindra Bank Fraud case.
ED started the probe based on the FIR that Patna Police had filed under many IPC, 1860, provisions. According to the FIR, 13 fraudulent transactions totalling Rs. 31.93 Crore were carried out from the bank accounts of the District Land Acquisition Officer and Competent Authority of Land Acquisitions (CALA Cum DLAO), and the money was syphoned off using bank accounts belonging to various fictitious or shell companies.
According to the inquiry conducted in accordance with the PMLA, 2002 requirements, Sumit Kumar and his associates were able to transfer money from the accounts of CALA Cum DLAO without the signatory’s knowledge by using forged papers and RTGS form signatures. By obtaining the payments’ clearance without the proper verification, he abused his position. Additionally, a review of the bank accounts held in Sumit Kumar and his wife’s names found transactions totalling crores that appeared to be out of proportion to their source of income and incongruous with their character.
According to the inquiry, Sumit Kumar played a key role in stealing money from government accounts and caused a significant loss of public funds. He was detained by ED on July 10, 2023, due to his significant involvement in the scam, and on July 11, 2023, he appeared before the Honourable Designated Special PMLA Court and was given judicial detention. The Hon’ble Court subsequently awarded ED possession on July 17, 2023, for a period of five days, or until July 23, 2023. The probe is being expanded upon.
