In a major breakthrough in a multi-crore bank loan fraud case, police in Rajasthan’s capital Jaipur have arrested three accused who had allegedly been evading arrest for several years. Those arrested include former bank manager Madanlal Katta, Ajay Sharma, and his wife Sapna Sharma. The trio is accused of securing large mortgage loans by submitting forged documents and using disputed or questionable properties as collateral, causing substantial financial losses to the bank.
The case is linked to a high-profile fraud registered in 2018, in which 59 individuals, including former bank office-bearers, employees, borrowers, and guarantors, were named for alleged criminal conspiracy, cheating, and forgery. Investigators claim that the accused systematically prepared fake property documents and presented them as genuine to obtain loan approvals from the bank. Based on these documents, multiple loan accounts were sanctioned, allowing the accused to allegedly withdraw and misappropriate crores of rupees.
Registration Begins for FutureCrime Summit 2026, India’s Largest Cybercrime Conference
The investigation revealed that established banking procedures and verification protocols were allegedly bypassed during the loan approval process. Authorities suspect that several properties offered as collateral were either under dispute or supported by forged ownership records. Despite these concerns, the properties were reportedly accepted as valid mortgage assets, enabling the approval of substantial loans. When repayments failed to materialize, the matter eventually surfaced as a large-scale financial fraud.
According to officials familiar with the case, a probe conducted by the cooperative sector authorities uncovered significant irregularities in the functioning of the institution. The inquiry reportedly highlighted procedural lapses and deficiencies in document verification mechanisms within the bank. Following these findings, a criminal case was registered and a detailed investigation was launched.
Over the years, several accused persons connected to the case were arrested. However, a few key suspects managed to remain absconding, prompting authorities to intensify efforts to trace them. Police subsequently announced rewards of ₹10,000 each for information leading to the arrest of Madanlal Katta, Ajay Sharma, and Sapna Sharma. A special investigation team was formed to track their movements and gather intelligence regarding their whereabouts.
Investigators relied on technical surveillance, mobile tracking, and information from confidential sources to identify possible locations linked to the accused. Acting on fresh leads, the special team conducted a coordinated operation and successfully apprehended all three individuals. Following their arrest, the accused were taken into custody for questioning.
Officials are now attempting to determine the full extent of the alleged conspiracy, identify additional beneficiaries, and trace the movement of funds obtained through the disputed loans. Investigators are also examining whether a wider network was involved in creating forged property records and facilitating fraudulent loan approvals.
Authorities believe that further scrutiny of financial transactions, mortgage documents, and historical banking records could reveal additional links and expose more individuals connected to the scheme. The possibility of an organized fraud network operating behind the transactions is also being explored.
Financial crime experts note that the case underscores the importance of robust due diligence and property verification mechanisms in the banking sector. Strengthening digital verification systems, cross-checking land records, and conducting independent asset assessments are considered critical safeguards against mortgage-related fraud.
The arrest of the three accused is being viewed as a significant development in the long-running investigation. With further interrogation and forensic examination of financial records underway, authorities expect additional revelations and possible action against other suspects linked to the alleged scam.
