Lucknow — A senior bank manager in Uttar Pradesh has been accused of masterminding a massive loan fraud scheme worth more than ₹50 crore, according to state investigators. Officials with the Special Task Force (STF) allege that Gaurav Singh, a branch manager, approved loans using forged documents and siphoned off nearly half of the disbursed funds.
Investigators said that while Singh claimed the lion’s share — about 50 percent of every fraudulent loan — his associates received smaller cuts, often in the form of 20 percent commissions for their role in the operation.
A Trail of Forged Documents
When STF officers raided an apartment in Hazratganj, they uncovered a trove of fraudulent materials: nine counterfeit seals, 17 blank checks, and sensitive banking documents tied to transport firms, cold storage businesses, and car rental companies. Officials say these items were used to fabricate loan applications that appeared legitimate on paper.
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Other Agencies Brought In
The case has now drawn the attention of federal financial regulators. Reports have been forwarded to the Enforcement Directorate (ED) and the Income Tax Department. Digital devices seized during the raid are undergoing forensic analysis, raising the prospect that the fraud extended well beyond state boundaries.
A Question of Oversight
The revelations have once again raised concerns about the effectiveness of internal bank audits and regulatory supervision. Experts warn that the case is symptomatic of deeper flaws in India’s financial oversight systems.
Expert Commentary
A financial crime analyst, speaking on condition of anonymity, noted: “This case highlights the Achilles’ heel of banking: insider collusion. Fraud on this scale is rarely possible without internal cooperation. Strengthening vigilance mechanisms, rather than relying solely on technical checks, is the only way to prevent such systemic breaches.”