Bhubaneswar: A former manager of the Punjab National Bank (PNB) Bapuji Nagar branch was arrested along with another person in connection with Rs 2.5 crore loan fraud case on Tuesday. The Economic Offences Wing (EOW) of the State Crime Branch arrested the senior manager Srikanta Prasad Prusty and proprietor of K P Solutions Kali Prasad Mishra.
It is alleged that Mishra, who is dealing with wholesaling and retail trading of tiles, sanitary items and electronic goods, had availed Cash Credit (CC) Loan amounting to Rs 2.5 crore with the help of the bank manager by mortgaging the property of three guarantors, who during inquiry denied to have signed the documents and kept the properties as mortgage for the loan.
During the investigation, it is ascertained that the accused loanee used fake KYC documents including electricity bills and Voter Identity cards in the names of the three guarantors, who purportedly stood as guarantors for the loans and mortgaged their immovable property located at Madhu Patna, Cuttack during the year 2017, whereas the facts remained that one of the guarantors had expired during the year 2014 i.e. more than three years prior to the loan sanctioned, said EOW.
"...Prusty, the then senior manager, Punjab National Bank, Bapuji Nagar Branch in criminal conspiracy with the loanee had recommended for sanction of huge CC loan to the tune of Rs 250 lakh by accepting the forged documents, mentioning to have verified identity of the guarantors and also entertaining the impersonators (or the guarantors to sign the mortgaged deeds knowing very well that they are not the owner of the property and thereby caused huge loss to the bank/ Govt exchequer. The loan Is now outstanding to the tune of Rs. 267.33 lakhs," an EOW release read.
The anti-corruption wing further said that the investigation into the PNB loan fraud case is underway.