Former State Bank of Sikkim GM Arrested Over Alleged Crores-High Asset Case
Former State Bank of Sikkim General Manager was arrested on September 28 after an investigation into alleged fund siphoning, illicit property acquisitions and assets disproportionate to known income.
GANGTOK- The Sikkim Vigilance Police (SVP) has arrested a former General Manager of the State Bank of Sikkim (SBS) in an ongoing disproportionate assets investigation involving allegations of fund siphoning, illicit enrichment and acquisition of properties through allegedly illegal proceeds.
According to a press statement issued by the SVP, the former bank official was arrested on September 28, 2026, following an investigation into allegations that he and his family possessed assets allegedly disproportionate to their known sources of income and which they would be unable to satisfactorily account for.
The case followed specific information received by the Vigilance department regarding the alleged accumulation of disproportionate assets, following which an FIR was registered.
Searches in Gangtok and Siliguri
As part of the investigation, Vigilance Police conducted searches at multiple residential premises linked to the accused in and around Gangtok and Siliguri.
The department said the properties were identified through intelligence inputs and discreet enquiries and are suspected of having been acquired using funds allegedly siphoned off during the former official’s tenure.
During the searches, officials seized documents and other materials relating to the accused’s assets. The Vigilance department said the recovered material indicates the suspected use of proceeds of crime for acquiring properties.
Further investigation is underway to establish the complete value and nature of the assets involved.
Allegations relate to 2022-2024 tenure
The former official served as General Manager of the State Bank of Sikkim between 2022 and 2024.
The Vigilance department has alleged that during this period, he engaged in corrupt practices, including allegedly deceiving bank customers and beneficiaries and siphoning off crores of rupees through illegal means.
Investigators have further alleged that the funds were subsequently used to purchase buildings and plots of land, with some of the properties registered in the names of the former GM and his wife.
These remain allegations under investigation, and the final extent of any financial irregularities will depend on evidence gathered during the investigation and subsequent legal proceedings.
Earlier ED action involving Rs 65.46 crore in properties
The latest Vigilance action comes against the backdrop of an earlier investigation involving the same former SBS official.
According to the Vigilance department, the Enforcement Directorate (ED) had previously provisionally attached several immovable properties allegedly linked to him.
In March 2025, the ED’s Gangtok sub-zonal office reportedly attached movable and immovable properties valued at approximately Rs 65.46 crore in a related money-laundering investigation. Bank balances and fixed deposits amounting to around Rs 53.41 crore were also reportedly frozen.
The ED action was linked to allegations of large-scale fund siphoning from the State Bank of Sikkim.
Wider corruption investigations
The Sikkim Vigilance Police said it has also registered multiple FIRs involving alleged corruption by officials of the State Bank of Sikkim across different branches.
The cases involve allegations including abuse of official position and illicit enrichment, with investigations continuing.
The latest arrest and property searches are part of the ongoing effort to determine the extent of the alleged financial irregularities and identify assets that may have been acquired from suspected proceeds of crime.
The department said further legal action, including proceedings for attachment of assets where applicable, would follow based on evidence uncovered during the investigation.
The Sikkim Vigilance Police has reiterated its commitment to tackling corruption and promoting transparency and integrity in public administration. It has also appealed to citizens to report information concerning alleged corruption, misconduct or malpractice involving public servants.
