The Cyber Crime Police have arrested a member of a loan fraud racket that used forged PAN and Aadhaar details to obtain consumer loans and purchase high-value electronics and two-wheelers. The accused allegedly took loans in the name of Shailendra Singh, son of a former state minister, without his knowledge. Police claim the gang has been active since 2021 and generated illegal gains of around ₹2.5–3 crore.
Shailendra Singh approached the cyber crime police after receiving a recovery call from a finance company regarding an unpaid loan of ₹82,600. He was informed that an iPhone and two Samsung mobile phones had been purchased using the loan. On checking his credit report, he discovered that his PAN number had been tampered with and linked to three fake Gmail IDs and a mobile number. Further inquiry revealed that loans worth lakhs had also been taken from other financial institutions in his name.
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Surveillance leads to arrest
Cyber Crime nodal officer Aditya Singh said the investigation brought four names into focus — Narayan Chaurasia, Nitin Chaurasia, Manoj and Shailendra. Surveillance inputs indicated that several electronic items had been delivered to an address in Chanakyapuri, Garhi Bhadauria. Acting on these leads, police arrested Nitin Chaurasia, while two of his associates remain on the run.
During interrogation, the accused disclosed that he had previously worked with a finance company where employees were stationed at large retail showrooms to facilitate instant consumer loans. Familiar with the process and verification gaps, the gang exploited the system to get loans sanctioned using forged documents.
Goods delivered to rented premises
After securing loan approvals, the gang purchased motorcycles, scooters, televisions, refrigerators, air conditioners, mobile phones, geysers and coolers. Deliveries were taken at rented accommodations to avoid detection and prevent the trail from reaching the real identity holders. Police said the accused himself could not recall the number of loans obtained through the fraud.
Multiple victims, damaged credit histories
Investigators believe several individuals have been affected, many of whom were unaware of the fraud until they received recovery notices from finance companies. The racket led to severe damage to victims’ CIBIL scores, which range from 300 to 900 and determine a borrower’s creditworthiness. A poor score makes it difficult to obtain loans and increases borrowing costs.
Illegal earnings in crores
Police estimate that the gang earned between ₹2.5 crore and ₹3 crore over the past five years. Raids are underway to trace and arrest the absconding members based on inputs from the arrested आरोपी.
Advisory on document safety
Cyber crime officials have urged citizens to safeguard PAN, Aadhaar and other identity documents and to monitor their credit reports regularly. Any suspicious loan entry, recovery call or unknown financial account linkage should be reported immediately to the cyber crime police to prevent further misuse.
Authorities said coordination with financial institutions is being strengthened to plug verification loopholes in digital lending processes and to ensure stricter checks. The crackdown is part of a broader effort to dismantle organised loan fraud networks operating through identity theft and forged documentation.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
