Customers duped, crores siphoned in Shopian HDFC bank fraud

Danishwar Hameed

A major financial fraud running into crores of rupees has surfaced at the HDFC Bank branch in south Kashmir’s Shopian district, with multiple account holders alleging that their deposits, fixed deposits, and even sanctioned loans were manipulated or siphoned off without their knowledge.

According to the victims and an FIR registered by police, the fraud was allegedly orchestrated by the branch’s then manager, Irfan Zargar, in connivance with other bank employees. The police have booked the accused under relevant sections of the law relating to criminal breach of trust and forgery, naming Zargar as the prime accused.

Another bank official, Adil Ayoub Ganie, has also been mentioned, with victims alleging both were aware of or involved in the irregularities.

Loan Closure Turns Into Nightmare

One of the key complainants, Asim Iqbal Wani, director of Freshman Cold Store at Lassipora, Pulwama, said his company had a loan account of ₹20 crore with the bank, of which ₹4.75 crore had been utilised.

“In May 2025, we decided to close the loan account after depositing all the money and completing all formalities. We even received the bank’s NoC and mortgage papers on May 22, 2025. The officials told us it would take a week to shut down the account,” Wani told .

But instead of closure, Wani says the account remained active without his knowledge.

“On June 10, we received a call from HDFC enquiring about a huge number of transactions from our account. I was shocked to hear this. It felt like someone had pulled the ground from under my feet ,  the trust we had in the system vanished in that moment,” he recalled.

Wani says his company immediately complained to HDFC’s top officials in Mumbai. “They assured us they would return the money, but so far nothing has been returned. This is despite us being told the account was closed weeks earlier.”

According to Wani, the scam began even earlier. “In 2023, ₹20 lakh was withdrawn from my father’s account. At the time, the manager said it was a technical issue. Now we have come to know that ₹1.75 crore in cash was withdrawn from our loan account without authorisation. Because of this, we could not operate our cold storage or accept produce from farmers as planned.”

Fake Fixed Deposits and Vanishing Savings

Other customers who spoke to The Kashmiriyat said they were duped through fake fixed deposit (FD) schemes.

Sheeraz Ahmed of Saidpora, Shopian, said he and his wife Rifat had opened an FD account in 2018 worth ₹72 lakh. “They promised us good returns. In 2021, we noticed numerous transactions from our account that we never authorised. When I went to withdraw my money last month, I was told there was no FD — all the money had been withdrawn. The FD was due to mature in July 2025 for transfer to my savings account,” Ahmed told over the phone.

Another victim, Showkat Tak, says money was withdrawn from his savings account without his consent.

Bashir Ahmad Wani, 78, a retired government employee, had an FD of ₹27 lakh and a sanctioned loan limit of ₹39 lakh. “I never used the loan money. When I heard about the fraud and went to the bank, I was shocked to find a loan balance of ₹39 lakh in my name,” Wani said.

The FIR Says

The FIR (No. 168/2025) registered at Police Station Shopian on August 9, 2025 under sections 336(3) BNE, 316(5), 318(4), 340(2) of the IPC and provisions of the IT Act 61(2) and 66(c) notes multiple instances of alleged unauthorized transactions, forged fixed deposit (FD) receipts, and fraudulent withdrawals involving various customers of HDFC Bank’s Shopian branch.

The FIR, of which a copy is available, states that bank authorities allegedly deceived customers by fabricating account statements and FD receipts, which later turned out to have no monetary backing in the bank’s system.

“It has been found that the branch records do not match the deposits made by customers, with several entries showing receipts issued without corresponding credits in the bank’s system,” the FIR states.

In several cases, customers deposited large sums for fixed deposits, in some instances running into crores , only to later discover that no such deposits were recorded in official bank records.

The FIR details specific complaints, including withdrawals from accounts without the account holder’s knowledge, premature withdrawals of fixed deposits without consent, and false adjustments of loans against such fabricated instruments.

“The inquiry revealed instances where cash collected from account holders was not deposited into their respective accounts,” it records. In some cases, letters claiming loan closure were allegedly forged, and collateral properties were wrongfully adjusted against fake settlements.

Several victims, as per the FIR, allege that unauthorized debits were made to their accounts on multiple dates in 2023, with amounts running into tens of lakhs each time. Some complaints accuse branch officials of creating entirely fake FD receipts for huge sums, using them to mislead customers over several years.

“Fake deposit receipts were issued to customers, creating an impression that their money had been credited, while the funds were misappropriated,” the FIR notes.

The investigating officers have cited criminal breach of trust, forgery, cheating, and misuse of official position by the bank employees named in the complaint. They note that the magnitude of the fraud, the number of victims, and the scale of the forged documentation make the matter of significant public importance.

The FIR also records that the police station in Shopian lacks the specialized forensic and economic crime investigation facilities needed for such a complex financial case.

Therefore, it recommends transferring the investigation to the Crime Branch Kashmir for a thorough, technical, and forensic-led inquiry before any formal charge sheet is filed.

Victims Demand Accountability

The victims have expressed frustration over what they say is the slow pace of the investigation. “Why are arrests not being made despite an FIR? We have deposited our money in the bank. We don’t know the managers personally, our relationship is with the bank. The money must be returned by the bank,” one victim said.

While HDFC Bank has suspended Irfan Zargar and internal investigations are said to be underway, the victims insist that the matter be handed over to the Crime Branch Kashmir for a thorough probe.

A victim demanded immediate arrest of the accused stating, “if they are not arrested, they can destroy the evidence. We seek their immediate arrest.”

“This is not just about individual losses,” Wani said. “It’s about the trust people place in banks. If such things can happen here, it can happen anywhere.”