Bank Fraud: Madhya Pradesh Labourer Receives Rs. 314 Crore Income Tax Notice

In a startling case that has exposed alarming loopholes in financial monitoring and identity verification, a daily wage labourer from Multai in Madhya Pradesh’s Betul district has been served an income tax notice amounting to a staggering Rs. 314.79 crore.

The notice, issued by the Maharashtra Income Tax Department on April 4, was initially sent to Nagpur—Chandrashekhar Kohade’s previous address—before being redirected to his current location in Multai. The incident left his family reeling, with his wife reportedly hospitalised due to the emotional distress caused by the massive tax liability.

Suspected Bank Account Misuse at Shrinath Mangalam Bank, Nagpur

Kohade, who previously worked as a contractor and milk vendor in Nagpur, now resides in a modest rented house in Multai. He suspects that his bank account at Shrinath Mangalam Bank in Nagpur may have been misused.

“I used to deposit ₹200 to ₹300 daily. The bank agent, who helped open the account, took my mobile number but never linked it to the account. He kept my passbook and only asked for my signature in a diary after collecting the money,” Kohade explained.

This raises serious concerns over potential bank fraud, misuse of identity, and unauthorised high-value financial transactions conducted without the account holder’s knowledge.

Income Tax Department Initiates Confiscation Proceedings

Citing unexplained income worth ₹314.79 crore, the Income Tax Department has not only issued the notice but has also requested the Multai Municipality to begin confiscation proceedings against Kohade’s property. However, when local authorities finally traced him, they were shocked to discover that the alleged crorepati was a humble labourer struggling to make ends meet.

Case Highlights Glaring Gaps in Financial Oversight

This bizarre and troubling incident has triggered debates around financial inclusion, identity theft, and the responsibility of banks in protecting vulnerable account holders from fraud. It also raises questions about the robustness of checks within India’s income tax and banking systems.

Legal experts and cybercrime specialists are now calling for a thorough investigation into the case, particularly the operations at Shrinath Mangalam Bank and the role of the agent who managed Kohade’s account.

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