SBI Scandal Unfolds: Ex-Chairman Dinesh Khara, DMD Binod Mishra, and CGM Arvind Kumar Singh Named in Multi-Crore Fraud Allegations
- ByStartupStory | May 6, 2025
In an explosive development that has sent shockwaves through the Indian banking sector, serious allegations of financial misconduct have surfaced against senior officials of the State Bank of India (SBI). The focus of these allegations is on former Chairman Dinesh Khara, who retired in 2024, Deputy Managing Director (HR) Binod Kumar Mishra, and Arvind Kumar Singh, the Chief General Manager (CGM) of the Maharashtra Circle. The scandal, which revolves around embezzlement, favoritism, and abuse of power, has sparked a widespread call for accountability and transparency within the nation’s largest public sector bank.
The Unfolding Drama: Dinesh Khara’s Retirement and Alleged Misconduct
The sudden retirement of Dinesh Khara, former Chairman of SBI, which had initially been presented as a routine exit, is now being questioned following the filing of a detailed whistleblower complaint. According to credible internal documents and communications reviewed by Startup Story’s investigative team, Khara’s departure was allegedly triggered by mounting pressure from internal investigations into his involvement in various irregular transactions.
The whistleblower complaint points to Khara’s oversight in enabling fraudulent activities carried out under the guise of routine banking operations, including CSR initiatives, which were supposed to benefit the public and the environment. Instead, funds meant for plantation drives, social welfare programs, and rural development were allegedly diverted to NGOs with dubious track records, some of which are believed to be linked to family members of SBI officials. This has raised serious concerns over the authenticity of several CSR projects reported by SBI over the years.
Binod Mishra: A Rising Star Amid Scandalous Allegations
Despite the mounting corruption allegations, Binod Kumar Mishra, who was promoted from Chief General Manager (CGM) to Deputy Managing Director (HR) in 2024, remains at the heart of the controversy. Mishra is accused of manipulating internal promotions, postings, and rehiring retired officials at inflated salaries to maintain a network of loyalists. According to whistleblower accounts, this internal network was used to shield corrupt practices and ensure the continuation of fraudulent activities within the bank.
Moreover, Mishra is alleged to have played a significant role in undermining merit-based decision-making, instead fostering a culture of favoritism and retaliation. Current and former employees have reported instances where staff members, particularly those who opposed the alleged wrongdoing, were either transferred, sidelined, or removed from key positions.
This has sparked outrage within the bank and left many questioning the integrity of SBI’s human resources policies.
Arvind Kumar Singh’s Role in the Maharashtra Circle Scandal
Arvind Kumar Singh, the Chief General Manager (CGM) of SBI’s Maharashtra Circle, has also come under scrutiny in connection with financial irregularities. Singh’s tenure has been marked by several questionable decisions, including the approval of loans to high-risk entities and suspicious land acquisition deals. One of the most alarming developments concerns a potential land scam related to the acquisition of property for the new SBI Local Head Office (LHO) in Pune.
Internal audits and RTI documents have revealed discrepancies in the valuation and procurement process, with several instances of inflated property prices and questionable approvals from internal departments. These irregularities point to possible collusion between bank officials and property developers, raising concerns about misuse of public funds and lack of transparency in the bidding process.
CSR Funds: Misused for Personal Gain
One of the most shocking revelations from the whistleblower complaint involves the gross misuse of SBI’s Corporate Social Responsibility (CSR) funds. Intended to support environmental initiatives and social welfare programs, these funds were allegedly diverted to a network of NGOs with connections to senior bank officials. A significant case under investigation is the loan granted to Jai Shri Gayatri Food Products, an NGO linked to the accused parties, which reportedly received a ₹110 crore loan despite glaring issues in due diligence.
Documents obtained through RTI requests show that the NGO’s financial records were inconsistent, with numerous discrepancies indicating possible money laundering. The NGO’s GST number (23AAHFJ5195A1ZP) shows signs of financial irregularities, including mismatched transaction records and potential misrepresentation of assets. Investigators suggest that these funds were funneled to benefit a closed network of vendors, officials, and their families.
Whistleblowers Speak Out: A Culture of Intimidation and Retaliation
A growing number of whistleblowers—many of whom are former and current SBI employees—have come forward to share their experiences of intimidation and retaliation. According to these individuals, anyone who attempted to expose corruption or resist participating in fraudulent schemes faced transfers, demotions, or even threats. Some whistleblowers reported being coerced into silence, with their complaints either ignored or dismissed by higher authorities.
These revelations have painted a disturbing picture of a systemic culture of impunity and corruption within one of India’s most trusted financial institutions. As the investigation into these allegations unfolds, it is clear that SBI’s internal mechanisms may have been deliberately manipulated to cover up fraudulent activities and prevent accountability.
A Ripple Effect: Other Banks Under the Microscope
As investigations into the SBI scandal continue, several other major banks have come under scrutiny. Whistleblower reports suggest that similar patterns of corruption, including fraudulent loan approvals, embezzlement of CSR funds, and HR manipulations, have occurred at other institutions like Bank of Baroda, Kotak Mahindra Bank, and Canara Bank.
Former employees from these banks have shared testimonies of systemic fraud, with one whistleblower describing a “syndicated fraud network” involving auditors, internal vigilance staff, and external vendors, all exploiting gaps in oversight mechanisms. These revelations suggest that corruption is not isolated to SBI but may be a broader issue within the Indian banking system.
A Call for Action: The Need for Accountability and Reform
The scale of these allegations has created a groundswell of demand for greater transparency, accountability, and reform in India’s public sector banking institutions. Experts are calling for immediate investigations by agencies such as the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), and the Comptroller and Auditor General (CAG). Given the high-ranking individuals involved, this case could set a precedent for prosecuting white-collar crime in the banking sector.
It is imperative that regulatory bodies, including the Reserve Bank of India (RBI) and the Ministry of Finance, take swift action to ensure that these claims are thoroughly investigated. A failure to do so would not only undermine public trust in SBI but also in the broader financial system.
Your Voice Matters: Expose Corruption, Uphold Integrity
As the investigation into this scandal deepens, we urge anyone with credible information or evidence related to financial misconduct at SBI or other banks to come forward. The integrity of India’s banking system depends on the actions of those who refuse to stay silent in the face of wrongdoing.
If you have information, documents, or personal accounts related to financial irregularities or corruption within SBI or other banking institutions, please share them confidentially with our investigative team at: �� startupstorymedia@gmail.com
Together, let’s take a stand against corruption and work towards creating a more transparent, accountable, and ethical banking system in India.
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