Bank corruption syndicate exposed in Indore:EOW finds evidence of organized nexus in loan fraud cases; 5 FIRs registered this year

Bank loan scams surfacing in Indore are no longer limited to forged documents or negligence by individual bank employees. Complaints reaching the Economic Offences Wing (EOW) indicate the active involvement of a well-organized syndicate. In the first five months of this year, the EOW has registered five FIRs in connection with bank loan frauds. The accused include bank managers, regional managers, panel lawyers, processing officers, and borrowers, indicating a coordinated network allegedly involved in siphoning off public money. Loans of crores sanctioned against low-value plots According to the EOW, plots worth merely Rs 20–25 lakh were used to secure loans ranging between Rs 1 crore and Rs 2 crore. When banks later initiated recovery proceedings, it was discovered that the mortgaged properties were either already pledged elsewhere or had significantly lower market values than claimed. EOW SP Rameshwar Singh Yadav said that five cases have been registered in the first five months of this year, compared to 12 FIRs recorded during the previous year. Investigators found that bank officials were fully aware that the mortgaged properties were already pledged elsewhere or were overvalued. Despite this, loans continued to be sanctioned. Case 1: Rs 40 lakh loan issued against already-sold property In one case, account holders mortgaged property documents with the bank for land that had already been sold to others. Despite having complete knowledge of the actual ownership status, bank officials approved a loan of Rs 40 lakh. When the loan turned into a default and the bank initiated auction proceedings, it emerged that the borrowers did not even own the mortgaged property. The EOW registered an FIR against: The complaint was filed by Anand Shivanand Totad, Deputy General Manager of the regional office of Canara Bank in Indore. Case 2: Land value inflated multiple times to obtain loan In another case involving alleged bank fraud worth Rs 1.70 crore, the EOW registered a case against bank officials and a businessman linked to Canara Bank. Vimlesh Chaturvedi, director of AV Graphics and Trading, allegedly prepared forged documents for a disputed plot in Manishbagh and mortgaged it with the bank. Based on these documents, an application for a loan of Rs 1.95 crore was submitted. Investigators found that the actual market value of the land was around Rs 23 lakh, but fake registry documents were used to show its value as Rs 1.25 crore. Accused named in the FIR Those booked in the case include: All have been charged under sections related to cheating, forgery, fabrication of documents, criminal conspiracy, and provisions of the Prevention of Corruption Act. Eight more complaints under investigation The EOW is currently examining eight more complaints related to bank loan frauds. Officials said that most cases point toward a nexus between bank officials and borrowers. In loans exceeding Rs 1 crore, approval from a regional manager is mandatory. However, investigators found that regional managers sanctioned loans without properly verifying the actual status and value of the mortgaged properties.