Loan ‘fraud’ in cooperative society: Rs 66,000 taken in name of man dead since 2007

In a shocking case of financial fraud, a loan of Rs 66,000 was allegedly taken in the name of a deceased man from a Primary Agriculture Cooperative Society (PACS) under Rajkanika police limits in Kendrapara district. 

The matter came to light after the deceased’s family received a notice demanding repayment.

According to reports, Narayan Swain of Siko village had passed away on September 20, 2007. However, records from Siko Primary Agriculture Cooperative Society (PACS) show that a loan of Rs 66,000 was sanctioned in his name in 2013, six years after his death.

The irregularity surfaced when the cooperative society recently issued a repayment notice to Narayan Swain’s family. Shocked by the demand, his son lodged a written complaint with Rajkanika police, alleging loan fraud and demanding strict action against those involved.

“A loan of Rs 43,262 was drawn and now they are asking us to repay Rs 66,557. How can a dead person avail loan? I have lodged a complaint and requested to launch an investigation into the matter,” said Niranjan Swain, the complainant.

Meanwhile, the society’s secretary Hemant Kumar Nayak clarified that he has been in charge only since 2019 and was not associated with the institution when the loan was issued. He stated that higher authorities have been informed and an internal probe has been initiated into the fraudulent loan.

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“I took charges as the secretary in 2019. I was told to serves notice to persons who have overdue. I have informed the matter to higher authorities and necessary action will be taken,” said Hemant Kumar Nayak, secretary of the society.

Meanwhile, police have begun a preliminary investigation into the incident to trace those responsible for the financial forgery.