Odisha EOW Arrests Banker & 2 Others In ₹4.13 Crore Bank Fraud Case

Bhubaneswar: In a case involving a bank fraud involving over Rs 4 crore, the Economic Offences Wing in Bhubaneswar arrested three people, including a retired banker and an ex-LIC agent.

The individuals arrested were identified as Md. Mustakim Raza, the loanee, Prakash Kumar Mohapatra, a former senior assistant at the Urban Cooperative Bank’s Christ College extension counter, and Sk. Abdul Hayee, a retired branch manager of the Nuapatna branch. In a 409/420/467/468/471/120-B IPC EOW case, the trio was arrested.

Priyabrata Panda, who held the position of Chief Executive Officer I/c at the Urban Cooperative Bank Ltd in Cuttack, made the allegations that led to the case’s registration.

According to the allegations, Sk. Abdul Hayee, the former branch manager of the Nuapatna branch, and Prakash Mohapatra, a senior clerk at the Extension Counter of Urban Cooperative Bank Ltd, Cuttack conspired with three loan recipients to approve eight loans against fake LIC policies totalling Rs. 3.82 crores from 2019 to 2021. The current outstanding amount on these loans is Rs 4.13 Crore.

Md. Mustakim Raza served as a LIC agent from 2002 until 2022 before being arrested in the bank fraud case. He is accused of stealing LIC policies from the branch and forging them by adding his name to the list of loanees. He was successful in obtaining the loan using fake insurance coverage. And the bank employees that were detained knew about this forgery. An investigation is currently underway to find the other two suspects in the case.