A farmer in Uttar Pradesh’s Balrampur district has alleged that a loan of more than ₹20 lakh was sanctioned in his name without his knowledge, consent or loan application, raising serious questions over banking procedures and customer safeguards. The matter came to light when he visited the bank to inquire about his fixed deposit and was informed that a substantial loan was outstanding against his account.
The case is linked to the Indian Bank branch at Chamrupur-Mahdeiya in the Shridattganj area. The complainant, Janardan Singh, a resident of Nayanagar Vishunpur village in the Utraula region, has alleged that his account details and deposited funds were misused without authorisation. A criminal case has been registered, and police have begun an investigation.
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Farmer Says FD Funds Were Linked to Unauthorised Loan
According to Janardan Singh, he had deposited approximately ₹22 lakh in the bank after selling his agricultural land. He later created a fixed deposit with the amount, believing the funds were secure for future needs.
The farmer has alleged that the then branch manager, in collusion with others, sanctioned a loan of more than ₹20 lakh in his name. He claimed he never submitted any loan application, signed any loan-related documents or gave consent for borrowing.
Despite this, bank records allegedly showed an outstanding loan linked to his account. The issue surfaced only when Singh visited the bank to check details related to his fixed deposit and associated transactions.
Police Examine Loan Papers and Bank Records
After being informed about the alleged loan liability, Singh sought clarification from bank officials and later approached police with a formal complaint. Based on the complaint, a case has been registered under relevant provisions of the Bharatiya Nyaya Sanhita.
Investigators are examining bank records, loan approval documents, account details and other related files to determine how the loan was allegedly sanctioned. Police are also checking whether proper verification procedures were followed before the loan was approved.
The probe is expected to establish whether banking rules were violated and whether additional individuals were involved in the alleged irregularity.
Case Raises Questions Over Banking Safeguards
Banking experts say loan sanctioning generally requires multiple layers of verification, including customer identification, a formal application, signed documents and compliance checks. If the allegations are found to be true, the case could point to serious lapses in internal controls and oversight.
The incident has drawn attention to depositor protection, customer rights and the need for strict safeguards against unauthorised financial transactions. Experts have also advised customers to regularly monitor account statements, deposits, SMS alerts and email notifications to detect suspicious activity early.
Investigators are continuing to verify records maintained by the bank. Further action will depend on the findings regarding the alleged loan approval process and the responsibility of those involved.
