Indore EOW Registers FIR in Rs 33 Lakh Bank Loan Scam Involving Forged Property Papers
Indore: The Economic Offences Wing (EOW) has officially registered a First Information Report (FIR) against a network of individuals, including bank officials and a property valuer, for allegedly orchestrating a sophisticated loan fraud amounting to Rs 33 lakh. The scam involved the use of counterfeit property documents to secure illicit funds from Canara Bank, formerly known as Syndicate Bank, at its Nanda Nagar branch in Indore.
Details of the Fraudulent Scheme Unfold
According to an official press statement released by the EOW, the case underscores a severe and alarming lapse in due diligence by the bank authorities involved. The investigation was initiated following a formal complaint lodged by Anand Totad, the Deputy General Manager of the bank. The probe meticulously uncovered that the fraud began in 2016 when Karamat Khan, the proprietor of M/s Abu Road Lines, initially obtained a loan of Rs 10 lakh.
In a bold move to escalate the illicit gains, the accused conspired to increase the loan limit to Rs 33 lakh in 2017. This was achieved by submitting forged title deeds for a property situated at House No. 435-A in Green Park Colony, Indore. The fraudulent documents were crafted to mislead the bank into believing the property was unencumbered and available for mortgage.
Discovery of the Scam and Subsequent Investigations
The fraudulent activities remained undetected until December 2019, when the loan account was officially declared a Non-Performing Asset (NPA). During the recovery proceedings initiated under the SARFAESI Act, bank officials were stunned to discover that the property in question had already been mortgaged to Indian Bank. Shockingly, it had been auctioned off in 2021, rendering the bank's security completely worthless.
The EOW's investigation revealed that the loan sanction was heavily reliant on misleading and false reports provided by the bank's panel advocate and the appointed valuer. This points to a deep-seated criminal conspiracy involving multiple parties. The key individuals implicated in the case include:
- Karamat Khan, the primary borrower
- Mohammad Rafiq, the property mortgagor
- Jatin Gupta, the former Branch Manager
- Kamlesh Darwani, the former Credit Manager
- Sunil Jain, the valuer and engineer
- Other associates involved in the scheme
Serious Irregularities in Banking Protocols
Authorities have highlighted serious irregularities in the Know Your Customer (KYC) verification process and the mandatory due diligence procedures that were supposed to be followed by the bank officials. The failure to conduct proper checks allowed the forged documents to pass through without scrutiny, facilitating the fraud. This case raises significant concerns about internal controls and compliance within financial institutions, emphasizing the need for stricter oversight and accountability.
The EOW continues to delve deeper into the conspiracy, aiming to uncover all facets of the fraud and ensure that all perpetrators face legal consequences. This incident serves as a stark reminder of the vulnerabilities in the banking sector and the critical importance of robust verification mechanisms to prevent such financial crimes.
