Bhubaneswar: The Economic Offences Wing, Bhubaneswar, arrested three persons including a retired banker and an ex- LIC agent in over Rs 4 crore bank fraud case.
The arrested accused persons were Sk. Abdul Hayee, the Retired Branch Manager of Nuapatna Branch; Prakash Kumar Mohapatra, former Sr. Assistant of Christ College extension counter of Urban Cooperative Bank, Cuttack; and Md. Mustakim Raza, the loanee. The trio was arrested in an EOW case U/s 409/420/467/468/471/120-B IPC.
The case was registered on allegation of Priyabrata Panda, who served as the Chief Executive Officer I/c at the Urban Cooperative Bank Ltd in Cuttack.
As per allegation, Sk. Abdul Hayee, the then Branch Manager of Nuapatna Branch, the then senior clerk Prakash Mohapatra of Extension Counter of Urban Cooperative Bank Ltd, Cuttack, colluded with three loanees sanctioned eight loans against fake LIC policies amounting to Rs 3.82 crore during the period 2019 to 21. The current outstanding amount on these loans is Rs 4.13 Crore.
The ex-banker as well as Sr. Assistant at Christ College extension counter of the Urban Cooperative Bank in conspiracy with the arrested loanee Md. Mustakim Raja and two others had fraudulently sanctioned 8 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 EOW said in a release today.
Md. Mustakim Raza, who was arrested in the bank fraud case, was working as an LIC agent from 2002 to 2022. He allegedly collected LIC policies from the branch that he forged by putting the name of the loanees including him. He managed to avail the loan against the forged insurance policies. And the arrested bank officials were aware of such forgery. The investigation is currently underway to nab two others accused in the case.