Arunachal: Massive Rs 14 Crore Loan Scam Uncovered at Roing Apex Bank
According to reports, the financial malpractices centered around a Kisan Credit Card (KCC) account in the name of M/s Hapi Enterprise, a private firm.
ROING – A staggering Rs 14 crore loan fraud has rocked the Roing branch of the Arunachal Pradesh State Cooperative Apex Bank in Lower Dibang Valley district, triggering panic withdrawals and raising serious concerns about the bank’s operational integrity.
The scandal, allegedly orchestrated by the former branch manager, has led to the suspension of the implicated official and an ongoing internal probe to uncover the full extent of the financial irregularities.
According to reports, the financial malpractices centered around a Kisan Credit Card (KCC) account in the name of M/s Hapi Enterprise, a private firm. KCC accounts, typically capped at a loan limit of Rs 3 lakh, were grossly violated when transactions worth Rs 14 crore were processed through this account between February 2 and August 23, 2024.
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The account, initially approved for a Rs 4 crore loan, ballooned far beyond permissible limits without proper repayments, suggesting potential misuse of funds.
The then branch manager, Anisha Apum, who is reportedly the wife of incumbent Dambuk MLA Puinnyo Apum, was served a show-cause notice on April 27, 2025, by the bank’s Managing Director, Bittu Kri, for gross violations in cash credit handling. Further notices were issued on September 12 and October 16, 2023, summoning her to appear before a disciplinary committee, but she failed to respond.
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A final directive ordered her to regularize the overdraft account within seven days, failing which disciplinary action was warned under the Staff Service Rules. Apum, now suspended, has reportedly made partial repayments, including Rs 1 crore in March 2025, as part of a six-month deadline set by the bank to recover the funds.
The scam came to light following a query raised by digital portal NewsFy, prompting Kri to acknowledge discrepancies in over 100 accounts across multiple branches, some involving even higher figures. “Erring officials have been a key hurdle in recovery,” Kri stated, emphasizing that premature suspensions often lead to legal delays.
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He ruled out systemic failure but admitted that misconduct by certain officials in key positions has plagued the bank’s operations. To date, authorities have recovered approximately Rs 6 crore of the defaulted loan from the Roing branch.
The revelation sparked widespread panic among depositors, with hundreds, mostly women, swarming the Roing branch on Tuesday to withdraw their savings amid rumors that the bank could be declared a defaulter. The chaos underscored deep public distrust in the institution, which currently grapples with a Non-Performing Asset (NPA) ratio of 31%, amounting to Rs 121.94 crore.
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This is not the first instance of financial irregularities at the Apex Bank. Historical cases include a 2007 scam involving Rs 200 crore in indiscriminate loan sanctions, leading to the sacking of 28 employees and the suspension of 19 senior officials.
More recently, allegations have surfaced of unauthorized loans to politically connected individuals, including a Rs 17 crore case involving incumbent Chayang Tajo MLA Hayeng Mangfi and a Rs 5 crore loan linked to former Dumporijo MLA Paknga Bage, both under investigation.
The bank, established in 1978 with 37 branches and 250 employees, has initiated reforms to address systemic weaknesses. These include voluntary retirement for underperforming staff, fresh recruitments, and stricter monitoring of loan accounts.
Over 100 employees have exited since Kri took charge in 2022. Kri emphasized the bank’s commitment to recovering public funds and restoring trust, with voluntary settlements yielding recoveries ranging from lakhs to crores in some cases.
Local residents and depositors are demanding accountability. “How can such a massive fraud go unnoticed?” asked Mopi Ete, a Roing shopkeeper. “The authorities must ensure our savings are safe.” The bank has urged calm and assured depositors that measures are in place to protect their funds.
The ongoing probe is expected to uncover further details about the involvement of other officials and potential beneficiaries. For now, the Roing Apex Bank scam stands as a stark reminder of the vulnerabilities in cooperative banking systems and the urgent need for robust oversight to safeguard public trust.
