A complaint alleging that employees and customers together diverted about ₹16 crore from The Muslim Cooperative Bank in Mysuru has been registered at Udayagiri police station, after the bank’s chief executive officer, Sheikh Ibrahim, cited suspected manipulation of accounts and internal controls.
According to the complaint reported by Prajavani, the alleged irregularities took place during the period when the late Mir Humayun was serving as the bank’s president. The complaint names bank employees Syed Mansoor, Rafath Zareen, Fazlullah Shareef, Salauddin and Asgar Pasha, along with some customers, and alleges that they acted in collusion to misuse the bank’s funds.
The complaint states that Syed Mansoor, who served as a branch manager between 2009 and 2023, allegedly misused the bank’s “maker and checker” control system. The system is intended to separate the preparation and verification of transactions. The complaint alleges that fictitious credit entries were created in internal general ledgers and that the bank’s accounts were consequently manipulated. It further alleges that head-office officials Rafath Zareen and Fazlullah Shareef assisted in the process.
The alleged diversion of funds was reportedly routed through accounts in other banks to conceal the source of the money. The complaint also alleges that cheques worth about ₹5.28 crore were issued illegally to NK Steels in violation of Reserve Bank of India guidelines. The source report does not state whether the allegation has been independently established or whether the company has responded.
The complaint further alleges that 11 fictitious loan accounts were created to conceal the financial irregularities. A difference of ₹13.69 crore was reportedly identified in reconciliation accounts maintained between the bank’s head office and branch offices. The bank CEO said the discrepancy was revealed through a special audit report and sought action against those found responsible.
The police case follows the bank’s complaint and centres on allegations covering a period of several years. The available report does not provide details of arrests, chargesheets, recovery of funds or further investigative action. Those aspects will determine how the alleged accounting entries, cheque transactions, loan accounts and control failures are established in the case.
