Jharkhand police on Tuesday arrested a former assistant general manager of the Jharkhand State Cooperative Bank (JSCB) from Bengal for misappropriation of funds to the tune of Rs 4 crore.

Sandip Sen, who is understood to have extended undue favours to a businessman in connivance with other bank officials, was arrested from Kharagpur, according to an official statement issued by police headquarters.

Sen, who was posted in the Ranchi head office as assistant manager (accounts), is accused of forging account books in connivance with Sunil Kumar Sathpathi, who was the manager of the Seraikela branch, and another staffer, Madan Lal Prajapati, to benefit one Sanjay Kumar Dalmia.

A case against Sen was lodged in the Seraikela police station in 2019 under various sections of IPS and Anti-Corruption Act after the fraud came to light, police said.

“As many as 12 separate loans were running under the name of Dalmia in this bank. However, Sen along with the other co-accused forged the bank accounts to help him close all the loan accounts without payment. As a result, the bank incurred losses to tune of Rs 4.14 crore,” the police statement said.

“Sen is being brought to Ranchi on transit remand following his arrest. CID will file a charge sheet against him soon,” it added.

CID sources said the fraud, committed between 2011 and 2016, was estimated to be around Rs 38 crore. “Different bank officials in the Seraikela branch issued loans to Dalmia. But over the years, all his loan accounts went on to become non-performing assets (NPA). In some instances, despite NPAs, he (Dalmia) enjoyed financial favours from the bank because of connivance of a few officials, said a police source.

As per the probe, Sen and Co was directly involved in misappropriation of over Rs 4 crore. About a dozen bank officials including Sen were named in the FIR filed in August 2019. Three persons have been named, the source added.