The Enforcement Directorate (ED) has provisionally attached assets totaling ₹65.46 crore in connection with a money laundering investigation involving Dorjee Tshering Lepcha, the former General Manager of the State Bank of Sikkim (SBS). This action underscores the agency’s commitment to combating financial irregularities within India’s banking sector.
The attached assets encompass both movable and immovable properties. Specifically, four residential properties and land parcels located in Deorali, Syari, Ranipool, and Penlong—all within Sikkim—have been seized. Additionally, bank accounts holding approximately ₹53.41 crore, registered under the names of Lepcha and his family members, have been frozen. These measures are part of an ongoing investigation into the alleged misappropriation and laundering of funds from SBS, conducted under the Prevention of Money Laundering Act (PMLA) of 2002.
Established in 1968, the State Bank of Sikkim operates as an autonomous body under the jurisdiction of the Sikkim government, primarily responsible for managing the state’s treasury functions. The current investigation stems from a First Information Report (FIR) filed by the Crime Investigation Department (CID), which highlighted substantial financial discrepancies within the bank.
According to the ED’s findings, Lepcha allegedly orchestrated a sophisticated fraud by creating a fictitious bank account under the name “AE Roads and Bridges Department, Government of Sikkim.” Through the manipulation of documents related to transactions with two public sector banks, funds were illicitly credited to this account. Subsequently, these misappropriated funds were diverted into personal accounts belonging to Lepcha and his associates, indicating a deliberate attempt to siphon off public money for personal enrichment.
In February 2025, the ED conducted multiple searches at properties linked to Lepcha, resulting in the seizure of documents pertaining to various property acquisitions. These searches aimed to uncover the extent of the fraudulent activities and trace the flow of illicit funds. The investigation is ongoing, with authorities diligently gathering evidence to build a comprehensive case against Lepcha and any other individuals involved in this extensive fraud.
This case highlights the critical importance of robust oversight and accountability mechanisms within financial institutions, especially those entrusted with public funds. The alleged actions of Lepcha not only breached the trust placed in him as a senior banking official but also exposed vulnerabilities within the banking system that can be exploited for personal gain.
The ED’s proactive measures in attaching assets and freezing bank accounts serve as a stern warning to those who might contemplate similar fraudulent activities. By leveraging the provisions of the PMLA, the agency aims to disrupt and deter money laundering operations, ensuring that the proceeds of crime are identified and confiscated.
Furthermore, this incident underscores the necessity for continuous vigilance and stringent internal controls within banks and financial institutions. Regular audits, real-time monitoring of transactions, and a culture of ethical conduct are essential components in safeguarding the integrity of financial systems.
As the investigation progresses, it is anticipated that more details will emerge regarding the modus operandi employed in this fraud and the potential involvement of other individuals. The outcome of this case could lead to the implementation of enhanced regulatory measures aimed at preventing similar occurrences in the future.
In conclusion, the ED’s decisive action in attaching assets worth ₹65.46 crore linked to the former General Manager of the State Bank of Sikkim reflects a steadfast commitment to upholding financial integrity. This case serves as a poignant reminder of the need for unwavering vigilance, transparency, and accountability within the banking sector to protect public funds and maintain trust in financial institutions.
