Another shocking case of a fake loan scam was exposed by the Economic Offences Wing (EOW) of the Crime Branch in Bhubaneswar. The investigation revealed a fraud worth ₹3.5 crore, leading to the arrest of five individuals.
The scam began with the manipulation of property documents to avail a loan, and later misappropriation of the loan amount. This has raised concerns about the rise of financial fraud in India
The Mastermind Behind the Fraud
The arrested individuals include:
- Niranjan Satpathy, a home guard
- Rinarani Satpathy, his wife
- Dhananjay Prusty and Surendra Kumar Beura, the key planners
- Nirapada Karmakar, who played a significant role in executing the scheme
The accused cleverly operated the scam, using illegal methods to secure a hefty loan from a nationalized bank in Cuttack.
How the Fraud Was Executed?
It all began when Prusty and Beura established a gold jewellery manufacturing unit in Cuttack on December 3, 2022.
However, their involvement was short-lived, as they resigned on September 20, 2023, passing the business ownership to Karmakar’s wife, Jonaki, and Sarat Chandra Swain.
This transfer of ownership seems to be harmless, but it was a key part of their fraud.
After getting the ownership, the new owners approached a nationalized bank in Cuttack and secured a staggering ₹3.5 crore loan in March 2024.
The loan was sanctioned against property documents, which did not belong to any one of them.
The fraud came into play when the actual landowner, who was completely unaware of this fraudulent transaction, discovered the scam when he attempted to sell his property.
Upon uncovering the fraudulent use of his land, the rightful owner immediately reported the matter to the authorities.
Following a detailed investigation, the Economic Offense Wing (EOW) traced the culprits and arrested them. The case serves as a grim reminder of how financial institutions, despite a strict verification process, can sometimes fall prey to well-planned fraudulent schemes.
Why is this Case a Matter of Concern?
This scam reveals significant gaps in banking and property verification processes.
Key concerns include:
- Public Awareness: Individuals must be more vigilant about monitoring their financial assets and documents. Financial institutions must arrange a programme to create awareness of how to avoid loan scams.
- Banking Security Risks: Lapses in thorough verification allowed fraudsters to exploit the system.
- Real Estate Fraud: The misuse of property documents underscores the risks property owners face.
- Financial System Loopholes: Despite regulatory safeguards, scams like these continue to happen, calling for stricter verification measures.
This loan scam in Bhubaneswar is a stark reminder of and need for robust preventive measures are essential. Banks and regulatory authorities must enhance their verification process to prevent similar scams in the future.
