RBI currency chest fraud: ₹8.7 crore missing from Ahmedabad Bank of Baroda branch

A major financial fraud case has emerged at a Bank of Baroda branch on Gandhi Road in Ahmedabad’s Kalupur area, where a bank employee allegedly siphoned off ₹8.70 crore from an RBI currency chest by manipulating records. Police have registered a case and launched a search operation after the accused reportedly absconded with his family.

According to the FIR filed by the branch’s chief manager, Harikar Devan, the alleged fraud involved cash stored in a Reserve Bank of India (RBI) currency chest maintained at the branch. Currency chests are used to store and distribute large volumes of cash to banks and financial institutions as required.

Investigators said the alleged irregularities surfaced during a routine review of cash reserves and record management procedures.

Joint custodian accused of manipulating records

As per banking procedures, the responsibility for handling and monitoring cash reserves in the RBI currency chest rested with chief custodian Sanjay Shah and joint custodian Harshsiddh Kadiyar, a resident of Chandkheda.

According to the complaint, Kadiyar allegedly manipulated official records and cash movement entries over a period of time, resulting in the unauthorised removal of ₹8.70 crore from the currency chest.

Officials said a custodian and joint custodian were appointed specifically to maintain records and oversee transactions involving the movement and storage of cash within the vault.

Extended leave raised suspicion

The matter reportedly came under scrutiny after Kadiyar suddenly stopped reporting to work and sought repeated extensions to his leave.

According to the FIR, on April 13, he informed the chief manager through a message that he was unwell and requested one day of leave. He subsequently extended his absence by applying for five days of medical leave and later sought another 17 days of leave from April 20 to May 5.

Bank officials rejected the extended leave request and instructed him to report back to work. However, he allegedly did not return.

His prolonged absence later became a key factor during internal checks and the subsequent investigation.

Audit reveals missing ₹500 note bundles

The alleged discrepancy was detected while changes were taking place in the supervision of the currency chest.

With chief custodian Sanjay Shah nearing retirement, new officials were assigned responsibilities related to the RBI vault. During an audit of the cash reserves, officials reportedly found 104 bundles of ₹500 notes missing.

The missing cash was estimated at ₹8.70 crore.

The discovery prompted a deeper examination of records and surveillance footage, leading officials to suspect that the money may have been removed over a period of time without immediately attracting attention.

CCTV footage allegedly shows boxes being removed

During the investigation, officials reviewed CCTV footage from the branch and allegedly found visuals showing Kadiyar carrying multiple boxes outside the bank premises on January 13.

According to investigators, he had reportedly claimed at the time that the boxes contained scrap material being taken for disposal.

Police now suspect the alleged movement of scrap was used as a cover to remove cash from the bank without raising suspicion.

Investigators are also examining whether the alleged removal took place in stages.

Accused and family reportedly vacated residence

Bank officials later visited Kadiyar’s residence in Chandkheda as part of efforts to contact him. They reportedly found that he and his family had vacated the premises nearly a month earlier.

Police said they are now trying to trace his movements and determine whether he had planned the disappearance in advance.

Police inspector H R Vaghela of Kalupur Police Station said technical analysis and multiple teams had been deployed to locate the accused.

Investigators also suspect Kadiyar may have timed his absence strategically, allegedly taking extended leave knowing that CCTV footage is retained only for 90 days and hoping evidence would be erased before the discrepancy came to light.

The investigation is ongoing.