Bhubaneswar: Economic Offenses Wing (EOWThe State Crime Branch on Thursday arrested three people, including two former employees of a bank, for their involvement in a loan Danger 4.13 crores.
The accused have been identified as Sheikh Abdul Hai, Prakash Kumar Mohapatra and Mohammad Mustaqeem Raza. Hayi and Mohapatra are former senior officials of the Urban Cooperative Bank, while Raza is a former LIC agent. On Wednesday, the bank filed a complaint with the EOW accusing Hei and Mohapatra of fraudulently sanctioning eight loans worth Rs 3.82 crore to three men, including Raza, between 2019 and 2021.
As per the complaint, the accused misappropriated the entire amount for their personal gains, causing huge loss to the bank. As of now the outstanding loan amount is Rs 4.13 crore.
As per the modus operandi, Hai, who was the branch manager of the bank’s Nuapatna branch, and Mohapatra, who was a senior assistant at the bank’s Christ College Extension counter in Cuttack, allegedly conspired with Raza to commit the fraud.
Raza, who worked as an LIC agent for many years, arranged policy bonds of several clients and created bogus bonds by changing the real names of the clients as well as the surrender value. He then gave fake LIC bonds to Hayee and Mohapatra, who in turn sanctioned eight loans worth Rs 3.82 crore against the security of the fake LIC bonds. Most of the fake loans were cleared during the pandemic in 2020 and 2021.
The fraud at the branch came to light months before Hei retired last year. When the loan accounts turned into non-performing assets, the bank conducted an audit, which was completed a few weeks back and unearthed the scam, following which Mohapatra was suspended.
The accused have been identified as Sheikh Abdul Hai, Prakash Kumar Mohapatra and Mohammad Mustaqeem Raza. Hayi and Mohapatra are former senior officials of the Urban Cooperative Bank, while Raza is a former LIC agent. On Wednesday, the bank filed a complaint with the EOW accusing Hei and Mohapatra of fraudulently sanctioning eight loans worth Rs 3.82 crore to three men, including Raza, between 2019 and 2021.
As per the complaint, the accused misappropriated the entire amount for their personal gains, causing huge loss to the bank. As of now the outstanding loan amount is Rs 4.13 crore.
As per the modus operandi, Hai, who was the branch manager of the bank’s Nuapatna branch, and Mohapatra, who was a senior assistant at the bank’s Christ College Extension counter in Cuttack, allegedly conspired with Raza to commit the fraud.
Raza, who worked as an LIC agent for many years, arranged policy bonds of several clients and created bogus bonds by changing the real names of the clients as well as the surrender value. He then gave fake LIC bonds to Hayee and Mohapatra, who in turn sanctioned eight loans worth Rs 3.82 crore against the security of the fake LIC bonds. Most of the fake loans were cleared during the pandemic in 2020 and 2021.
The fraud at the branch came to light months before Hei retired last year. When the loan accounts turned into non-performing assets, the bank conducted an audit, which was completed a few weeks back and unearthed the scam, following which Mohapatra was suspended.