Bhavnagar. Neelam Bagh Police have arrested Santosh Kumar, Chief Manager of a State Bank of India branch, in connection with an alleged ₹1.35 crore loan scam involving loans sanctioned under the Prime Minister’s Employment Generation Programme. Police said the case involves fake documents, procedural violations and suspected misuse of a government self-employment scheme.
SBI Official Arrested After Probe Into PMEGP Loans
According to police officials, the case began with a complaint filed on March 31 alleging irregularities in loans disbursed under the PMEGP scheme. During investigation, authorities found that multiple loans had allegedly been sanctioned without proper verification.
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Investigators said several approvals were based on forged or incomplete documents. The PMEGP scheme is meant to support self-employment by providing financial assistance to small entrepreneurs, but police suspect it was misused to obtain illegal financial benefits.
Agents and Beneficiaries Under Scanner
Police findings indicate that standard banking procedures were allegedly bypassed at the branch level. Authorities said agents and beneficiaries played a key role in facilitating irregular approvals.
Four women beneficiaries and two agents have already been arrested in connection with the case. During questioning, the name of the SBI Chief Manager surfaced, leading investigators to examine his role in the alleged fraud.
Wider Banking Role Being Examined
Officials said preliminary evidence points to violations of banking norms in the loan approval process. Following these findings, the bank official was taken into custody and formally arrested.
Police are now examining whether other bank employees or officials were involved. Investigators are also trying to determine the full extent of the network and identify all individuals who benefited from the alleged scam.
Authorities are focusing on documentary and technical evidence to trace the chain of transactions. Banking authorities have also increased vigilance and directed officials to review loan approval procedures under government schemes.
