Another Arrested in Rs 4.13 Cr Bank Loan Fraud Case by EOW

Bhubaneswar: Another accused in the Rs 4.13 crore bank loan fraud case, was arrested by the Economic Offences Wing (EOW) of Odisha Crime Branch.

The recently arrested accused, identified as Md Sarfaraj Jawed, was tracked down from Bhubaneswar on September 5.

To escape arrest he fled to the Midnapore district of West Bengal. According to an EOW release, a total of five persons have been arrested in connection with this bank loan fraud.

In August, Md Iftekhar Asif Khan was arrested for allegedly availing three loans amounting to Rs 47 lakh against one LIC policy. Although he showed that the policy was in his name, it was actually in the name of one Pawan Kumar Gupta.

The EOW has also arrested two former employees, Sheikh Abdul Hayee, Prakash Kumar Mahapatra, of Urban Cooperative Bank Ltd and Md Mustakim Raza, a former LIC agent, for fraudulent sanction of loans between 2019 and 2021 on the complaint lodged by the bank.

Hayee was the branch manager of the bank’s Nuapatna Branch while Mohapatra was the senior assistant.

In conspiracy with Raza, Md Sarfaraj Jawed and Khan, they had fraudulently sanctioned 25 loans against the security of fake/forged LIC policies. Of these, 8 loans amounting to Rs.4.13 crore could not be recovered, the release said.

Jawed had availed four loans amounting to Rs.1,58,65,000 against four LIC policies showing him as the life assured whereas actually policies stand in the name of many different persons like Pawan Kumar Gupta, Rajendra Kumar Sahoo and Sarfaraj Dilawar. Further investigation into the matter is underway, the release added.