Bhubaneswar: The Economic Offences Wing (EOW) of Odisha Police arrested a bank manager in connection with alleged fraudulent sanction of gold loan and misappropriation of over Rs 2.12 crore.
The accused, identified as Satyabrata Bhoi is being produced before the designated court under OPID Act in Baleshwar on Monday.
The case was registered on a written report of Asutosh Susil Kumar Patnaik, Regional Head of Union Bank of India, Regional Office in Baleshwar. It was alleged that between 2023 and June 2024, Satyabrata Bhoi, the then Branch Manager of the bank at Joda branch in Baleshwar in connivance with other employees, fraudulently sanctioned and disbursed 100 gold loans amounting to Rs.2,12,29,900/- against spurious/fake gold ornaments and without any proper documentation. Subsequently, he misappropriated the loans amount, thereby causing wrongful loss to the bank.
Bhoi had been functioning as Branch Manager of Union Bank of India at Joda branch since 12.09.2022. He was entrusted with the overall responsibility for the banking operations of the branch, including appraisal and verification of pledged gold ornaments, verification of borrowers’ eligibility and KYC, compliance with prescribed documentations, sanction and disbursement of gold loans, safe custody of executed loan documents and joint custody of the pledged gold ornaments.
Investigation revealed that the accused, in connivance with other bank employees, sanctioned 100 gold loans against fake/spurious gold ornaments by violating prescribed procedures. Loan files lacked proper documentation, KYC and genuine borrower signatures, while the Gold Pouch In-Out Register was not maintained, indicating deliberate facilitation of fraudulent loan disbursement.
Out of the 100 gold loan accounts, 23 accounts have been closed, while 76 accounts remain outstanding. The total outstanding amount in the 76 active accounts as on 18.08.2026 is Rs.1,97,50,636.71, EOW said in a statement.
Investigation further revealed that the accused Branch Manager deliberately caused the sanctioned loan amounts to be credited to the accounts of the respective borrowers and, without their knowledge or consent, subsequently transferred the funds to other accounts. The amounts were ultimately diverted to accounts linked to the accused and his associates, thereby facilitating misappropriation of the entire loan proceeds and an attempt to conceal the actual money trail.
The manner of disbursement and subsequent diversion of funds establishes the concerted role of the accused Branch Manager and other conspirators in fraudulently obtaining, diverting and misappropriating the bank’s funds.
Further investigation of the case is underway.