Major financial scam uncovered at State Bank of Sikkim, public outcry for action

Sikkimey Nagarik Samaj has exposed a significant financial scam at the State Bank of Sikkim (SBS), involving unauthorized transactions amounting to Rs. 69 crore. This revelation follows an internal audit conducted on March 31, 2024, which identified the fraudulent activities. Despite the audit, it took the bank almost three months to register a First Information Report (FIR), highlighting severe negligence by responsible officials.

The scam has caused widespread concern among customers and stakeholders, especially pension holders, due to the potential impact on their savings. The names of three subordinates from SBS have surfaced on social media as suspects, but there is suspicion that more individuals from within the bank might be involved, suggesting a broader criminal conspiracy.

This is not the first incident of misconduct at SBS. In 2011, a bank official at Rabongla was accused of embezzling interest money from account holders, which only came to light following complaints from the affected customers.

In response to the recent scam, the Managing Director of SBS downplayed the situation, referring to it as "a very small issue," which has further aggravated public concern. Sikkimey Nagarik Samaj has called for a comprehensive and impartial investigation into the fraud, urging SBS to initiate legal proceedings against all loan defaulters and enhance transparency.

The organization also emphasized the need for SBS to review and strengthen its internal security protocols to prevent future incidents through regular audits and stricter adherence to standardized procedures. They have requested clarity from the bank’s board of directors regarding any actions taken and have raised questions about the bank's financial sustainability, particularly concerning loan interests deducted from government employees' salaries.

The public demands that the SBS and the investigating agencies act without political bias to safeguard the interests of the Sikkimese people.