4 min readNew DelhiJun 9, 2026 04:00 PM IST
First published on: Jun 9, 2026 at 04:00 PM IST
The Telangana High Court has granted bail to two bank officials accused in a Rs 68.39 lakh investment fraud against a doctor, involving a fake scheme allegedly promoted through a video featuring Finance Minister Nirmala Sitharaman, holding that the prosecution had no concrete material to prove their involvement.
Justice Suddala Chalapathi Rao noted that the officials had opened the bank account following RBI-prescribed procedures, and the account was later misused by the principal accused.
“Evidently, the petitioners/accused Nos.3 & 4 are bank officials… nothing concrete has been placed by the prosecution that they were involved in the financial fraud in connivance with accused Nos.1 & 2… and have been arrested on 16.04.2026 and are in judicial custody since then… it is a fit case to enlarge the petitioners/accused Nos.3 & 4 on bail by imposing certain conditions,” the June 4 order noted.
Justice Suddala Chalapathi Rao granted bail to two bank officials accused of cybercrime against a doctor.
Doctor cheated of Rs 68.39 lakh
- The petitioners (Accused no. 3 and 4) are bank officials who, on the instructions of their superior officers, collected the KYC documents and updated them on the bank’s online system.
- After the system approved the KYC, following the guidelines, they opened the bank account for Accused no 1 and 2.
- They claimed that accused 1 and 2 had misused the account.
- The aforementioned accused lured a doctor into a fraudulent investment scheme promoted through an advertisement containing a video of Finance Minister Nirmala Sitharaman purportedly explaining a share-trading plan with promising high returns.
- Trusting the scheme, the complainant invested her money and was allegedly cheated of Rs 68.39 lakh.
‘No connivance’
- The counsel on behalf of the bank officials contended that they had no role in the alleged crime, nor were they in contact with any of the fraudsters.
- It was submitted that they had only followed the guidelines of the Reserve Bank of India, and had opened the bank account for the accused no. 1 and 2, who misused the account for fraudulent activity.
- It was argued that the bank officials had no connivance, and were falsely implicated in the said crime, and prayed to be granted bail, consenting to abide by any conditions imposed by the court.
‘Fit case to enlarge bank officials’
The Telangana High Court noted that the petitioners were the bank officials, and had updated the KYC of the accused, but nothing concrete had been placed by the prosecution that they were involved in the financial fraud in connivance with the accused.
The court observed Nos.1 and 2 and that the petitioners/accused No.3 and 4 (Bank officials) were arrested on April 16, 2026, and were in judicial custody since then.
The court opined that bank officials were fit to be released on bail, provided they follow the conditions imposed by this court.
Court’s directions to bank officials
- The bank officials must furnish a personal bond of Rs 50,000 each along with two local sureties of the same amount, the court may deem fit.
- They must report to the police station for 12 weeks, and cooperate in the further investigation.
- They must not tamper with evidence, influence witnesses or meddle with the investigation.
- Their passports shall be submitted to the police authorities as soon as they are released on bail.
Professor clicked unknown link, lost Rs 2.6 lakh
Recently, in another case, the Delhi High Court observed that customer negligence in digital banking is not confined to sharing OTPs and may also extend to clicking on suspicious links that compromise banking credentials, while allowing the State Bank of India (SBI)’s appeal against an order directing it to reimburse Rs 2.60 lakh lost in an alleged cyber fraud.
Chief Justice Devendra Kumar Upadhyaya and Justice Tejas Karia noted that in the context of evolving cyber frauds, a customer’s duty of care includes exercising caution while interacting with unknown links and applications, as such actions may expose sensitive banking credentials to misuse.
“In matters involving digital banking fraud, customer negligence cannot be confined solely to cases of express disclosure of OTPs or passwords. Compromise of such credentials may also occur where a customer interacts with suspicious links or unknown applications, thereby exposing the banking credentials to misuse,” read the May 29 order, which relieved the SBI of the liability.
The bank officials had only opened the account, which was later used by the account holders to commit a cyber fraud against a doctor, using Nirmala Sitharaman's video to lure her into making an investment. 
Justice Suddala Chalapathi Rao granted bail to two bank officials accused of cybercrime against a doctor.
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