The Uttar Pradesh Special Task Force (STF) has unearthed a sprawling financial fraud involving bank insiders and local agents who allegedly siphoned off millions through forged loan applications. The racket came into focus after the arrest of Union Bank branch manager Gaurav Singh and three associates, whose disclosures revealed the involvement of at least 18 others. Investigators believe the network spans 12 districts and implicates six bank managers directly.
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How the Network Operated
According to the STF, Singh began collaborating with four key players — Naved, Akhilesh Tiwari, Indrajeet, and Aamir Ehsan — soon after assuming charge at Union Bank’s Jankipuram branch in 2021. Together, they developed a system to secure loans using fabricated paperwork. While some members forged documents like Aadhaar cards, insurance papers, and inspection reports, others used insider influence to push approvals. Agents scouted borrower identities to front fraudulent applications.
Bankers and Agents Under Scanner
Singh’s statements named his wife, Kirti Sharma, a former branch manager, and staff at Vikas Nagar, Sarojininagar, and Birhana Road branches as direct collaborators. Nearly two dozen agents across districts funneled applications to the core group. Loans were disbursed in the names of individuals and fictitious firms, such as ₹25 lakh under Avadh Machine, ₹23 lakh under UP Ref Truck, ₹14.50 lakh under Ritesh Jaiswal, and ₹22 lakh under Ganpati Enterprises. In some cases, even vehicles and machinery purchases were faked to justify approvals.
Experts Warn of Deeper Risks
Cybercrime expert and former IPS officer Professor Triveni Singh called the scam a “red flag for the financial system,” stressing that insider collusion multiplies the scale of financial crime. “This was not just the misuse of digital tools but a deliberate exploitation of institutional weaknesses,” he noted, warning that unchecked fraud could corrode public trust in banks.
Investigation Widens
The STF is conducting raids across multiple districts and examining electronic devices seized during the arrests. Senior officers said more names could surface as forensic scrutiny continues. “This is not just financial fraud — it is a network that has challenged the integrity of institutions,” an official remarked.