GUWAHATI: The Chief Managing Director (CMD) of a private bank in Guwahati has been arrested after admitting to misusing consumer deposits for trading in equities, on Friday.
ALSO READ: Assam Government School Students Lack Counsel
The accused, identified as Nityananda Bhagawati, allegedly promised customers monthly high returns on their savings, leading to a scam worth lakhs.
Bhagawati, who hails from Nayakpara in Sipajhar, Assam, founded Assam Gramiya Nidhi Bank in Narengi four years ago. He employed agents across the state to attract small businesses and daily wage earners with promises of high returns. Initially, the bank honoured its commitments, creating trust among investors, many of whom deposited sums between ₹50,000 and ₹5 lakh. However, approximately a year ago, payments stopped abruptly, with Bhagawati offering various excuses for the delays.
As complaints mounted, investors approached the Noonmati police station, prompting an investigation. Earlier, Bhagawati assured authorities in writing that all funds would be returned, and partial repayments were reportedly made. However, he soon absconded, leaving hundreds of investors in financial turmoil.
Police registered a case under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code (IPC) and launched an extensive manhunt.
During interrogation, Bhagawati confessed to investing the misappropriated funds in online trading platforms. Authorities are now investigating the case further to trace the missing money and identify any accomplices involved in the scam.
Talking to GPlus, a police official from Noonmati police station said, “We apprehended him on account of the scam. The looted money is worth approximately ₹14-₹15 lakh. He has now been sent to judicial custody.”
Further details are awaited.