Bhubaneswar: The Economic Offences Wing, Bhubaneswar has arrested a former bank branch manager (BM) from Cuttack district in Odisha, for allegedly being involved in a loan fraud worth crores. The accused, identified as Swayam Prakash Parida, ex of Central Bank of India, Pallaspalli Branch, Bhubaneswar, had been absconding  and was already dismissed from service. He will be produced in court today.

As per reports, Parida had allegedly disbursed loans illegally to the tune of  Rs 1.09 crore. He was arrested basing on the complaint of Ajaya Kumar Khuntia, BM, Central Bank of India, Palaspalli Branch, Bhubaneswar. As per the complaint, during the year 2015-17, Parida along with Maitreya Mishra (other accused arrested earlier) and others, fraudulently managed to open several bank accounts in the name of Shree Bharat Motors, City Motors, Aditya Motors, Utkal Automobiles and Rajpath K.T.M, Bhubaneswar, in different Banks like Syndicate Bank, Odisha Gramya Bank, Axis Bank, UCO Bank and Central Bank of India by using fake and forged documents. Thereafter, they got the sanctioned loan amounts credited to the accounts so opened with different banks and misappropriated the same.

The arrested accused Swayam Prakash Parida was working as Branch Manager, Central Bank of India, Pallaspalli Branch, from May 2015 to November 2017. During his incumbency, he has sanctioned 24 vehicle loans and one CC loan with the amount varying from Rs.2 lakh to Rs.9.75 lakh under the ‘Cent Vehicle Schemes’ in the name of different persons basing on the forged KYC and loan documents. He, in conspiracy with one Maitreya Mishra who was earlier arrested in this case, has sanctioned the loans in the name of different persons including the fake ones and diverted the loan amount to different accounts so opened by the latter in the name of reputed vehicle dealers like Shree Bharat Motors, City Motors, Aditya Motors, Utkal Automobiles and  Rajpath K.T.M, by using fake KYC and ROC documents.

The accounts were opened and managed by accused Mishra fraudulently in a cool and calculated manner in connivance with the arrested accused Swayam Prakash Parida, and he was the authorized signatory of the accounts. The loan amounts sanctioned fraudulently in the name of different persons with or without their knowledge to
purchase vehicles were ultimately transferred to the accounts so opened by Mishra by using the fake KYC and ROC documents in the name of some of the reputed vehicle dealers. Later, the loan amounts were misappropriated by
both Mishra and the present accused Parida along with others.

Investigation revealed that an amount of Rs. 1.09 crore in respect of the 24 vehicle loans and one CC loan have been sanctioned/disbursed illegally, and the amount was misappropriated by the accused persons. The loans were sanctioned for purchase of the vehicles, but fake insurance certificate, cover notes, payment
receipts in respect of the vehicles were submitted without purchase of any vehicle. Even, there was no hypothecation of the vehicles to the lender bank. As a result, the bank could not recover the loan amounts in absence of any co-lateral security and thus suffered heavy loss. Further probe is underway, official sources informed.