Three held for Rs 4.13-crore bank fraud in Odisha
In a Rs 4.13 crore bank fraud case, the Odisha police Economic Offences Wing arrested three people, including a retired bank manager and an ex-LIC agent.
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Bhubaneswar: In a Rs 4.13 crore bank fraud case, the Odisha police Economic Offences Wing arrested three people, including a retired bank manager and an ex-LIC agent.
Sk Abdul Hayee, retired branch manager of Nuapatna Branch; Prakash Kumar Mohapatra, former senior assistant of Christ College extension counter of Urban Cooperative Bank, Cuttack; and Md. Mustakim Raza, the loanee, were identified as the accused.
The case was filed on the allegation of Priyabrata Panda, the Chief Executive Officer I/c at the Urban Cooperative Bank Ltd in Cuttack, according to an EOW release on Thursday.
Sk. Abdul Hayee and Prakash Mohapatra, according to the allegations, conspired with three loanees and sanctioned eight loans against fake LIC policies totaling Rs 3.82 crore between 2019 and 2021. The total amount owed on these loans is currently Rs 4.13 crore.
These two, along with the arrested loanee Md. Mustakim Raja and two others, fraudulently sanctioned eight loans totaling Rs.3.82 crore on the security of forged and fake LIC policies.
In violation of banking guidelines, the accused bank officials purposefully did not verify the authenticity/genuineness of the pledged insurance policies, nor did they get it ratified with the concerned branch of LIC, and instead sanctioned the loans showing falsely the assignment of the fake policies with LIC by fabricating the forged documents.
They continued to renew the loans by sanctioning new loans to close the previous loans. Even the pledged insurance policies are in the names of other people, but they have been forged by changing the policy holders' names to the loanees' names.
From 2002 to 2022, Md. Mustakim Raza worked as a LIC agent. He allegedly obtained LIC policies from the branch, which he forged by inserting the names of loanees, including himself. He was able to obtain the loan by using forged insurance policies. The arrested bank officials were also aware of the forgery. According to the release, an investigation is currently underway to apprehend two other people involved in the case.
