A major loan fraud has come to light in Raebareli, where nearly ₹9.02 crore was allegedly obtained from the Bank of Baroda’s main branch using forged and fabricated documents. After the internal investigation exposed irregularities, the bank’s Chief Manager Mukesh lodged an FIR late Monday evening at Kotwali Sadar against 48 loan applicants.
The scale of the fraud and the manner in which personal loans were sanctioned have triggered serious questions: How did fake identities get cleared? And was there any role of bank staff in enabling the racket?
Internal audit blows the lid off
According to Chief Manager Mukesh, the applicants allegedly hid their real identities and submitted fake credentials to obtain personal loans across 48 accounts.
Preliminary findings suggest the fraud took place between 2024 and 2025. A confidential inquiry ordered by the regional office of Bank of Baroda flagged multiple discrepancies and alerted senior authorities.
The matter later reached SP Dr. Yashveer Singh, who directed police to register a case and begin a detailed probe. The investigation has been handed over to Inspector Jitendra Kumar Singh.
Police say the accused used forged documents to siphon off ₹9,02,50,000. Parallel inquiries are also examining whether any officials or employees facilitated the process.
CPT analysis — “Fraud leveraged gaps in due diligence”
Experts from the Center for Police Technology (CPT) say the case highlights systemic vulnerabilities.
According to CPT:
- Fake KYC was likely cleared without strong cross-verification
- Field verification either did not happen — or was poorly documented
- Digital checks were possibly bypassed with manual approvals
- Loan agents or middlemen may have exploited insider access
CPT notes that such frauds grow when targets, pressure to meet disbursement numbers, and weak document validation converge.
The think-tank recommends mandatory centralized digital verification, geo-tagged field visits, and random audits by external teams, warning that “banks must assume every paper document can be forged.”
What went wrong at the branch?
Police officials say they are examining:
- How fake IDs passed through the approval chain
- Whether any officer ignored “red flags”
- The role of loan intermediaries operating around banks
- Which documents were forged — salary slips, land records or guarantor papers
A retired bank officer told investigators that personal loans usually require:
- department approval (for salaried applicants)
- salary certificate
- written undertaking for PF recovery in default
- KYC, photographs and two guarantors (for others)
He added bluntly:
“Such frauds rarely happen without inside help. Either the field survey is skipped — or the file is cleared despite doubts.”
Officers maintain silence — probe to reveal details
The revelations have caused a stir within the Bank of Baroda’s main branch. Senior officers have avoided public comment, saying only that the investigation is underway. Police believe more names may surface as digital trails and verification reports are matched.
Early inquiries aim to determine why mandatory checks failed and why questionable files were cleared without escalation.
Legal action begins — more arrests likely
CO Sadar Dharmesh Trivedi confirmed that an FIR has been lodged and a comprehensive inquiry is in progress. Those named — spread across several police station areas — now face criminal charges related to cheating, forgery and conspiracy.
Police also intend to identify any employees, facilitators or brokers tied to the loan racket.
CPT warning to banks
Center for Police Technology has cautioned financial institutions:
- Never rely on photocopies — verify at source
- Use AI-based anomaly detection on repeated guarantors and addresses
- Record every field visit with time-stamped photos
- Treat loan agents as high-risk intermediaries
The institution emphasized that loan fraud is shifting from big corporate scams to retail personal loans, where detection is slower and paperwork appears genuine.
As the investigation deepens, authorities believe this case could expose a larger network. For now, the Raebareli incident stands as a sharp reminder: when verification is compromised, public money becomes easy prey — and accountability must follow.
