Bhubaneswar: The Economic Offences Wing (EOW), Bhubaneswar, arrested three persons – Sk Abdul Hayee (a retired bank manager), Prakash Kumar Mohapatra (former Senior Assistant of Christ College extension counter of Urban Cooperative Bank Ltd, Cuttack), and MdMustakim Raza (a loanee), from Cuttack on Thursday in connection with a bank fraud case.
A case (No.16 dt. 26.04.2023) in this regard has been registered against the three accused in this connection at the EOW police station under Sections 409/420/467/468/471/120-B IPC. The arrested accused will be produced before the Court of JMFC (City), Cuttack.
The case was registered on the basis of a complaint lodged by Priyabrata Panda, Chief Executive Officer I/c, Urban Cooperative Bank Ltd, Cuttack, alleging that from 2019 to 2021 Sk Abdul Hayee and Prakash Kumar Mohapatra were hands-in-glove with three loanees and sanctioned 8 loans against fake LIC policies amounting to Rs 3.82 crore. At present, the amount due from the loanees is Rs 413 crore.
During the period 2019-21, Sk. Abdul Hayee was the branch manager of Urban Cooperative Bank Ltd., Nuapatna branch, whereas accused Prakash Kumar Mohapatra was the Senior Assistant, in charge of Christ College, Extension Counter of Urban Cooperative Bank Ltd, Cuttack.
Both conspired with arrested loanee Md Mustakim Raja and two others and illegally sanctioned 8 loans amounting to Rs 3.82 crore against the security of fake/forged LIC policies. The accused bank authorities in violation of the banking guidelines deliberately did not verify the authenticity/genuineness of the pledged insurance policies nor ratified them with the concerned LIC branch.
Further, they renewed the loans by sanctioning new loans to close the previous loans. Even, the pledged insurance policies stand in the name of some other persons. They had been forged by changing the name of the policyholders to the name of the loanees. Md Mustakim Raza was working as a LIC agent from 2002 to 2022, and he collected the LIC policies from the branch and he forged them by putting the names of the loanees, including his.
By entering into a conspiracy with the accused bank officials, he managed to avail of the loan against the forged insurance policies. The arrested bank officials were very much aware of the forgery.
Further investigation into the case is underway.
