Urban Bank Fraud Case: EOW Nabs One More Official

Bhubaneswar: Officials of the Economic Offences Wing (EOW), Bhubaneswar on Wednesday arrested Lalit Mohan Mohanty, an official of the Urban Bank in Bhubaneswar in connection with sanction of loan in a fraudulent manner and forwarded him to the to the court of Sub Divisional Judicial Magistrate (SDJM) here

The EOW registered a case under section 120(13)/420/467/468/471 of the IPC and section 13(2) R/w 13(1) (d) of Prevention of Corruption Act, 1988 consequent upon the enquiry into the affairs of Urban Cooperative Bank Ltd, Bhubaneswar relating to loss of money of depositors in the Bank and cancellation of the banking licence by the RBI.R/w 13(1) (d) of Prevention of Corruption Act, 1988 consequent upon the enquiry into the affairs of Urban Cooperative Bank Ltd, Bhubaneswar relating to loss of money of depositors in the Bank and cancellation of the banking licence by the RBI.

Investigation of the case so far revealed that loans were sanctioned by the bank officials in connivance with the loanees basing on the forged and fake documents as well as against pledge of inadequate securities. Besides, loans were sanctioned without proper documentation, verification of genuineness of documents etc. and thereby exposed the bank to grave financial risk and caused undue pecuniary advantage to loanees.

Earlier, Udayanath Sahu, former Branch Manager, Old Town Branch, and Bharat Bhusan Jagdev, former secretary, Santanu Kumar Mohanty, former secretary of the Bank were arrested on January 13 in 2016 and forwarded to the court.

Further investigation into the cases is on.