Gangtok, September 30 : Former SBS General Manager has been arrested by the Sikkim Vigilance Police in connection with an investigation into allegations of disproportionate assets, corruption and misappropriation of State Bank of Sikkim funds.
According to a release issued by the Vigilance Police, the former bank official was arrested on September 28. Searches were subsequently conducted at several residential premises in and around Gangtok and Siliguri.
The agency said the locations were identified through intelligence inputs and discreet enquiries. Investigators suspect that some of the properties were acquired using money allegedly misappropriated during the official’s tenure at the State Bank of Sikkim.
The identity of the arrested official was not disclosed in the information released about the latest action.
Documents seized during searches
The Vigilance Police said officials recovered documents relating to assets and other properties during the searches. The seized records and other material are being examined to establish the ownership, value and source of funds used to acquire the assets.
The investigation followed the registration of a First Information Report based on specific information alleging that the former official and members of his family possessed assets grossly disproportionate to their known sources of income.
According to the agency’s preliminary investigation, the accused allegedly engaged in corrupt practices while serving as a general manager of the bank between 2022 and 2024. The Vigilance Police has alleged that bank customers and beneficiaries were deceived and that crores of rupees were diverted through illegal means.
Investigators further suspect that part of the allegedly misappropriated money was used to purchase buildings and plots of land registered in the names of the accused and his wife. These allegations remain under investigation and have not been established by a court.
The Vigilance Police said the assets linked to the case are still being identified and quantified. Proceedings to attach properties found to be connected with the alleged proceeds of crime would be initiated under the applicable provisions of law, it added.
Related ED investigation
The case comes against the backdrop of a related money-laundering investigation concerning Dorjee Tshering Lepcha, a former General Manager of Operations at the State Bank of Sikkim.
In March 2025, the Enforcement Directorate provisionally attached movable and immovable assets valued at ₹65.46 crore in that investigation. The attached assets included four immovable properties situated at Deorali, Syari, Ranipool and Penlong, as well as bank balances and fixed deposits.
The money-laundering investigation originated from an FIR that was subsequently transferred to the Sikkim Vigilance Police. The latest information, however, did not expressly identify the person arrested on September 28 as Dorjee Tshering Lepcha.
Wider investigation continues
The Vigilance Police said multiple FIRs had earlier been registered during investigations into alleged corruption involving officials from different State Bank of Sikkim branches.
Authorities are examining accusations of abuse of official position, diversion of bank funds and illicit enrichment. Further legal action will depend on the evidence collected and the outcome of the continuing investigation, the agency said.
