MUZAFFARPUR, Bihar — Panic spread across several villages in Muzaffarpur district after more than 50 residents, many of whom never borrowed a rupee, suddenly received bank notices demanding repayment of loans worth up to three lakh rupees each. The bizarre situation has exposed what locals allege is a massive loan fraud involving forged documents and collusion by bank officials.
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Unexpected Notices Spark Outrage
The scandal unfolded when villagers in Kodariya and Basant Khairona, under Madwan block, received repayment notices from the Gobarshahi branch of a rural bank. Each notice warned that failure to repay by August 20 would result in legal action. Shocked recipients insist they never applied for or received any loans. Collectively, the bank is demanding repayment of over 1.5 crore rupees.
Villagers say repeated complaints to authorities went unheard, pushing them to file a case at the Katra police station. “We have no loans. Still the bank is threatening to recover money from us,” one resident said.
Phantom Wives, Phantom Loans
Some of the alleged fraud appears almost surreal. Bhagwanlal Sahni, a young man from Basant Khairona, told reporters he is unmarried, yet a loan was sanctioned in his name citing a wife called “Inar Devi.” According to Sahni, three lakh rupees were shown as borrowed against this fabricated marital record, and he has now received a repayment notice.
Other villagers also alleged that their names and those of fictitious family members were used to create fake loan entries, leaving them facing bank debt for money they never saw.
Ultimatum and Villagers’ Protest
The bank notices issued a strict ultimatum — repay by August 20 or face action. This triggered protests, with angry villagers marching to the local police station demanding an investigation. Many accused bank staff of colluding with fraudsters, saying such large-scale forgery could not occur without insider involvement.
The villagers, facing mounting fear, warned that if their grievances were ignored, they would escalate their protests. “We want a high-level inquiry. Otherwise, we will not be able to bear this injustice,” another villager said.
Bank Defends Its Position
Caught in the storm, the bank has defended itself. Amit Kumar, the Assistant Branch Manager (Operations Head), clarified that these cases fall under group loans. According to him, if even one borrower defaults, notices are automatically sent to all members of that loan group. “The bank has no intention to harass anyone. If some did not take loans, they will not have to repay,” he insisted.
But villagers remain unconvinced, arguing that fraudulent entries were deliberately made in the first place.