Lucknow/New Delhi: In a major breakthrough in Uttar Pradesh, the Special Task Force (STF) has arrested Union Bank of India branch manager Nitin Chaudhary from Delhi in connection with a large-scale fraud in the Mudra Loan Scheme. The accused is alleged to be part of an organized syndicate that sanctioned over 100 fraudulent loans using fake documents and manipulated identity records, causing losses worth several crores of rupees.
According to investigation agencies, the entire network operated in a highly systematic manner, involving not only bank employees but also individuals responsible for creating forged documents. The group allegedly exploited loopholes in the system for a prolonged period and misused government welfare loan schemes.
Sources revealed that Nitin Chaudhary, originally from Azamgarh, was posted at a bank branch in Delhi at the time of his arrest. During the operation, officials recovered a mobile phone, Aadhaar card, credit card, metro card, and cash from his possession. Authorities believe that the digital devices may contain crucial evidence related to the fraud.
Over 100 Fake Loan Accounts Created
Investigations have revealed that the gang created fake profiles of individuals across different states and sanctioned Mudra loans in their names. The sanctioned loan amounts were then transferred into accounts controlled by the syndicate and subsequently distributed among members of the group.
Officials stated that the entire system was carefully designed to appear legitimate during initial verification stages, ensuring that documents passed routine scrutiny without raising suspicion.
Photo Editing and Fake Companies Used in the Scam
During interrogation, the accused reportedly made several shocking revelations. He admitted that photographs on Aadhaar and PAN cards were altered using editing software to conceal real identities. Based on these manipulated documents, fake companies were created and used to obtain loan approvals.
Once the loans were sanctioned, the funds were routed through multiple shell accounts to obscure financial trails and make tracking transactions extremely difficult.
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Mastermind of Organized Gang Already Arrested
In this case, authorities had earlier arrested four other members of the syndicate. The alleged mastermind of the network, Amir Ehsan, was taken into custody in February 2026. Since then, further investigation has uncovered deeper layers of the racket, exposing widespread irregularities within the banking system.
Serious Questions Raised on Banking System
The exposure of this scam has raised serious concerns over internal monitoring mechanisms and loan approval processes within the banking sector. Preliminary findings suggest that the fraud could not have been executed on such a large scale without the possible involvement or negligence of certain bank employees.
Officials are currently examining digital records and transaction data to trace the full extent of the financial network involved in the fraud.
Further Investigation and Possible More Arrests
The STF has indicated that more individuals may be involved in the scam. Several suspicious accounts linked to the financial transactions are being identified, and additional arrests are likely in the coming days.
At present, the interrogation of the accused Nitin Chaudhary is ongoing, and forensic analysis of the recovered digital devices has been initiated. Investigators believe the case may not be limited to a single bank and could expose a wider, interlinked financial fraud network.
