Ludhiana: Punjab Police have registered a criminal case against seven individuals, including three Ludhiana-based businesspersons, in connection with an alleged bank loan fraud that reportedly caused a financial loss of ₹68.91 crore to Indian Bank. Investigators allege that multiple business entities obtained credit facilities from the bank and subsequently engaged in fraudulent financial transactions and a criminal conspiracy that resulted in substantial losses. Acting on the bank’s complaint, police have initiated an investigation and are examining the alleged money trail, financial records, banking documents and the involvement of other suspects.
The accused named in the FIR are Dharampal Jain, Jainender Jain, and Anju Jain. In addition, two unidentified private individuals and two unidentified public servants have also been named as accused. The case was registered on the complaint of Sandeep Rathi, Chief Manager of Indian Bank’s Stressed Assets Management Vertical Branch in Chandigarh. According to the complaint, the accused obtained multiple credit facilities through various business firms and later allegedly engaged in activities that caused significant financial losses to the bank.
According to the FIR, Dharampal Jain and Jainender Jain are partners in Shree Vallabh Exports and Shree Vallabh Overseas, while Anju Jain is the proprietor of A and J Impex. The bank has alleged that these firms and their proprietors or partners committed irregularities in loan accounts and financial transactions, leading to a continuous rise in the outstanding liabilities. Investigators are also examining the alleged involvement of other individuals and public officials in the suspected fraud.
The complaint states that, as of March 31, 2026, the bank had suffered a loss of approximately ₹68.91 crore, excluding accrued interest. As part of its recovery proceedings, the bank has already auctioned several properties linked to the borrowers. Despite these recoveries, a substantial amount remains outstanding. Investigators are now attempting to determine how the loan funds were utilised and whether the money was diverted to other accounts, firms or entities.
Police said the case was registered after a preliminary inquiry. The accused have been booked under Sections 406 (criminal breach of trust), 420 (cheating) and 120-B (criminal conspiracy) of the Indian Penal Code (IPC). During the investigation, authorities are scrutinising loan sanction records, bank account statements, property documents and other financial records to establish the full extent of the alleged fraud.
Investigating agencies are also examining whether the alleged forged transactions were part of an organised economic crime network or whether the fraud was confined to the firms named in the complaint. The role of the unidentified private individuals and public servants is also under investigation. Police said appropriate legal action will be taken against anyone whose involvement is established during the course of the investigation.
According to investigators, detailed analysis of the bank’s internal records, digital financial transactions, loan disbursement process and supporting documentation is underway. Officials believe that forensic examination of electronic banking records and financial data will help reconstruct the movement of funds and identify the complete chain of alleged irregularities. They are also verifying whether any violations occurred during the loan sanction and post-disbursement monitoring process.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said that large-scale banking and corporate financial fraud cases often require scientific forensic examination of digital banking records, loan documents, financial transactions, email communications and other electronic evidence to uncover the complete conspiracy. He emphasised that robust internal audit mechanisms, periodic risk assessments, digital monitoring and transparent loan verification procedures are essential to preventing such financial crimes. According to him, timely investigation and effective prosecution strengthen public confidence in financial institutions. Police said the investigation is continuing, and further legal action will be taken based on the evidence collected during the probe.
