One More Arrest In Bank Loan Fraud Of Rs 4 Crore In Odisha

Bhubaneswar: Economic Offences Wing (EOW) of Odisha Crime Branch on Monday arrested one more accused in the Rs 4.13 crore bank loan fraud case.

The arrested has been identified as Md Iftekhar Asif Khan.

Earlier, the EOW had arrested two former employees, Sheikh Abdul Hayee, Prakash Kumar Mahapatra, of Urban Cooperative Bank Ltd and Md Mustakim Raza, a former LIC agent, for fraudulent sanction of loans between 2019 and 2021 on the complaint lodged by the bank. Hayee was the branch manager of the bank’s Nuapatna Branch while Mohapatra was the senior assistant.

In conspiracy with Raza, Md Sarfaraj Jawed and Khan, they had fraudulently sanctioned 25 loans against the security of fake/forged LIC policies. Of these, 8 loans amounting to Rs.4.13 crore could not be recovered, an EOW release said, adding that they went on renewing the loans by sanctioning new loans.

Khan had availed three loans amounting to Rs 47 lakh against one LIC policy, showing him as the life assured when the policy actually in the name of one Pawan Kumar Gupta. Again, the same policy has been given as security by all the three loanees by changing their names as life assured, it added.

The fraud in the branch came to the fore a few months ago after Hayee retired last year. When the loan accounts turned into non-performing assets, the bank conducted an audit, which was completed a few months ago, and came across the scam, following which Mahapatra was placed under suspension.

Further investigation in the case is on, the release added.