EOW Odisha arrests 3 for bank fraud of Rs. 4.13 crore
Three persons have been arrested from Cuttack by the Economic Offences Wing (EOW) Odisha for a bank fraud amounting to Rs. 4.13 crore.
Bhubaneswar: Economic Offences Wing (EOW), Bhubaneswar has arrested three accused persons for a bank fraud to the tune of Rs. 4.13 crore on Thursday.
The arrested persons have been identified as:
- Sk. Abdul Hayee (Retd. Branch Manager of Nuapatna Branch),
- Prakash Kumar Mohapatra (the then Sr. Assistant of Christ College extension counter) of Urban Cooperative Bank Ltd., Cuttack and
- Md. Mustakim Raza (loanee),
The arrested accused persons are going to be produced before the Hon’ble Court of J.M.F.C (City),
Cuttack. The case was registered on the allegation of Priyabrata Panda, Chief Executive Officer I/c, Urban Cooperative Bank Ltd., Cuttack.
There were allegations that, during the period from 2019-21, the then Branch Manager of Nuapatna Branch and then then Sr. Assistant, Extension Counter of Urban Cooperative Bank Ltd., Cuttack by working hands in glove with three loanees.
The then Branch Manager of Nuapatna Branch sanctioned eight loans against fake LIC policies amounting to Rs.3.82 Cr. The present outstanding of which is Rs.4.13 Cr.
During the period 2019-21, the arrested accused Sk. Abdul Hayee was the Branch Manager of Urban Cooperative Bank Ltd., Nuapatna Branch whereas accused Prakash Kumar Mohapatra was the Sr. Assistant, In-charge of Christ College, Extension Counter of Urban Cooperative Bank Ltd., Cuttack.
Both in conspiracy with the arrested loanee Md. Mustakim Raja and two others had fraudulently and illegally sanctioned 08 loans amounting to Rs.3.82 Cr. against the security of fake/forged LIC policies.
The accused bank authorities in violation of the banking guidelines deliberately did not verify the authenticity/genuineness of the pledged insurance policies nor did they get it ratified with the concerned branch of LIC, and moreover, sanctioned the loans showing falsely the assignment of the fake policies with LIC by manufacturing the forged documents.
Further, they went on renewing the loans by sanctioning new loans to close the previous loans. Even, the pledged insurance policies stand in the name of some other persons but it has been forged by changing the name of the policy holders to the name of the loanees.
The arrested accused Md. Mustakim Raza was working as an LIC agent from 2002 to 2022, and he collected the LIC policies from the branch that he forged by putting the name of the loanees including him. By entering into a conspiracy with the accused bank officials, he managed to avail the loan against the forged insurance policies.
The arrested bank officials were very much aware of such forgery. The investigation of the case is on.
Ms Kalinga