Bhubaneswar | Odisha Police’s Economic Offences Wing (EOW) has arrested another accused in connection with a major bank loan fraud involving nearly ₹6.88 crore, taking the total number of arrests in the case to six. Investigators allege that the accused were part of a well-organised network that secured hundreds of loans from a public sector bank using forged employment records, fake salary documents and fabricated identity details.
According to officials, the latest accused was arrested from Bhubaneswar and is believed to have acted as an intermediary in the operation. Investigators say he played a key role in arranging forged documents and facilitating the approval of loans through fraudulent means. The scam reportedly took place between May 2022 and November 2023, during which 282 loans were sanctioned from different branches of the bank.
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The fraud came to light after the regional manager of the concerned bank noticed irregularities in several loan accounts and lodged a formal complaint. During internal scrutiny, bank officials allegedly found that repayments had suddenly stopped in a large number of accounts, causing them to turn into non-performing assets (NPAs). A deeper verification of documents later revealed that many employment records, salary certificates and borrower details were either fake or manipulated.
Investigators believe the accused created a systematic network to identify individuals whose documents could be used for securing loans. In some instances, people were allegedly persuaded to share identity documents and banking details in exchange for small commissions or financial incentives. Fake companies and fabricated employment profiles were then reportedly used to obtain loans from the bank. Authorities are now tracing the money trail to determine where the loan amounts were transferred and whether the funds were invested in businesses, properties or other financial activities.
Sources associated with the probe said investigators are also examining whether any insiders or bank employees may have played a role in bypassing verification procedures. Officials suspect that loopholes in the loan approval system were exploited repeatedly to secure large amounts without proper due diligence. Digital records, transaction histories and communication details are currently under forensic examination as part of the ongoing investigation.
Experts dealing with financial and cyber fraud say such scams have become increasingly sophisticated, with organised groups using forged digital documents and fake corporate identities to manipulate banking systems. They warn that rising dependency on digital verification alone can create vulnerabilities if proper physical and background checks are not conducted.
Renowned cyber crime expert and former IPS officer Prof. Triveni Singh said, “Financial fraud networks are now using technology and document manipulation to target banking systems. Fake salary slips, forged employment records and fabricated digital identities are increasingly being used to obtain loans fraudulently. Banks must strengthen both digital and physical verification mechanisms instead of relying solely on paperwork.”
Prof. Triveni Singh further stated that such syndicates often attempt to hide the money trail by transferring funds across multiple bank accounts and shell entities. According to him, forensic examination of banking transactions, mobile devices, digital communication and document trails becomes crucial in uncovering the full scale of organised financial frauds. He also advised people not to share personal documents such as Aadhaar cards, PAN cards or banking details without proper verification.
The arrested accused has been produced before a court and further interrogation is underway. Investigators believe additional arrests may follow as the probe progresses deeper into the network. Authorities are continuing to examine every aspect of the fraud, including document verification procedures, loan approval mechanisms and possible internal collusion within the banking system.
Officials said the investigation remains active and more financial transactions linked to the scam are expected to come under scrutiny in the coming days.
