Bhubaneswar: The economic offences wing (EOW) of the state crime branch arrested four men on Monday for orchestrating a bank loan fraud of Rs 8 crore using false documents.
The accused, identified as Smruti Ranjan Sethy, M Dibyashree Jyoti Ranjan, Niranjan Behera and Debasish Behera, allegedly operated as middlemen, facilitating fraudulent loans for 234 ‘ineligible beneficiaries’ between 2021 and 2023 from two branches of a nationalised bank in the city.
EOW’s SP Dilip Tripathy said the accused exploited the bank’s corporate loan scheme at its Jayadev Vihar and Damana branches. “The accused orchestrated a well-planned conspiracy by helping ineligible beneficiaries obtain loans through submission of forged employment credentials,” Tripathy said.
The fraudsters created counterfeit documents, including fake company letterheads, fabricated salary slips and forged appointment letters of prominent companies. They coached the loan applicants on how to present themselves during the verification process. The accused charged substantial commission from each successful loan applicant, EOW sources said.
Investigation revealed that the middlemen created an elaborate network to identify potential borrowers who would not typically qualify for bank loans. “They helped these individuals fabricate employment documents and other necessary paperwork to meet the bank’s lending criteria,” Tripathy said.
While the fraud occurred in phases from 2021 to 2023, the bank lodged a complaint on April 7 this year. Neither the bank nor the EOW could explain why there was a delay in lodging a complaint.
According to the EOW, “the fraud came to light when the bank noticed a pattern of defaults and conducted an internal audit. Most borrowers stopped paying EMIs shortly after receiving the loans. The bank’s attempts to contact the supposed employers revealed that the borrowers had never worked at these companies”.
The probe found that Rs 19,08,385, Rs 2.42 lakh, Rs 94,000 and Rs 50,000 were transferred to the accounts of Sethy, Ranjan, Behera and Debashis, respectively, from the accounts of the loanees, who are under the scanner of the EOW.
The cops have launched a detailed investigation to determine the full extent of the fraud and identify other potential accomplices, including the loanees. Officials are also examining the role of bank employees in the scheme.
“We are questioning the loanees and some bank officials. The bank should have properly verified the documents before sanctioning the loans. Loanees, who connived with the accused in the fraud, will be arrested. The bank reportedly took action against one of their employees. Our investigation is in progress,” Tripathy said.
The accused have been booked under various sections of the BNS, including criminal conspiracy, cheating and forgery. EOW has advised bank authorities to strengthen their verification procedures to prevent similar incidents.