UP Forest Corporation's Rs 58 Crore Vanishes in Alleged Fake FD Scam
Police in Lucknow have launched a detailed investigation into the alleged diversion of Rs 58 crore belonging to the Uttar Pradesh forest corporation. Investigators are actively seeking records from both the concerned nationalised bank and the corporation itself. Preliminary findings point to serious procedural lapses in the handling of these substantial public funds.
FIR Registered Against Unidentified Bank Employees
An FIR was officially registered against unidentified employees of the Sadar branch of a nationalised bank. The case, lodged at the Ghazipur (Indiranagar) police station, accuses them of allegedly issuing a fake fixed deposit receipt and siphoning off the corporation's funds. The forest corporation's managing director filed the formal complaint that initiated this legal action.
How the Funds Disappeared
According to the detailed complaint, the corporation's funds were previously parked with the Bank of Maharashtra. When these funds matured, the corporation planned to reinvest them through a competitive bidding process. The forest corporation invited bids on December 29, 2025, and opened them the very next day through a duly constituted committee.
The Sadar branch of the nationalised bank offered the highest callable interest rate during this bidding. Consequently, the bank was selected to handle the reinvestment. On December 31, the entire amount was transferred to the bank's intermediary parking account specifically for the creation of a new fixed deposit.
However, days after this transfer, the bank informed the corporation that only a savings account and a fixed deposit of Rs 6.82 crore existed in their records. Shockingly, the bank provided no explanation for the remaining Rs 58 crore. The massive discrepancy immediately raised red flags and triggered the current investigation.
Probe Focuses on Procedural Loopholes
Police sources indicate that the role of officials, both at the bank and within the corporation's internal process flow, is now under intense scrutiny. The preliminary probe has already revealed significant loopholes in the entire transaction process. Investigators are particularly examining how an account was allegedly opened even before the bidding process was formally completed.
Authorities are also questioning why the funds were routed through the same bank that eventually emerged as the highest bidder. This unusual arrangement has become a central point of the investigation into possible collusion or negligence.
Police Seek Complete Documentation
"We sought complete documentation, including bid papers, account-opening forms, transaction trails and internal approvals from both the bank and the forest corporation," said ACP Ghazipur (Indiranagar), Anindya Vikram Singh. This comprehensive document request aims to reconstruct the entire sequence of events and identify where the system failed.
Calls and messages sent by TOI to the managing director of UP forest corporation, Arvind Kumar Singh, went unanswered at the time of reporting. The silence from the corporation's top official adds another layer of mystery to this developing financial scandal.
The investigation continues as police work to trace the missing Rs 58 crore and determine responsibility for what appears to be a major financial irregularity involving public funds.
