A Gandhinagar court recently passed an order in a case of alleged forgery against a staff member of Yes Bank who worked as a relationship manager in the bank's wealth management vertical. The court has ordered a further probe of the matter.

Shruti Panchal, who is accused of forging the signature of one of its clients, prepared a duplicate company seal, changed bank mandates with forged signatures and the seal, and redeemed money worth Rs. 66 lakh that was parked with mutual funds leading to a loss of about Rs. 34 lakh to the client.

Panchal had approached MGD Electronics MD, Rajesh Rathi in the year 2007 to invest in mutual funds through the banks' wealth management division. The company invested an amount of Rs. 1 crore in four funds in December 2007.

MGD Electronics moved court after police declined to register a case. The court subsequently directed police to investigate the matter.

The court has also ordered investigation on other staff member since it is believed that Panchal committed the fraud with the help of other people. The court said that since people keep their money in banks, such cases can shatter client confidence.