Prayagraj. A case involving an alleged ₹75 lakh loan fraud has come to light in Prayagraj, where Baid Finserv Limited, based in Ajmer, allegedly sanctioned the loan to Asra Fincorp Private Limited on the basis of fake balance sheets and bank statements. The company allegedly stopped making repayments after paying only two instalments. On the direction of a court, Georgetown police have registered an FIR against Asra Fincorp directors Ashok Kumar Singh, Meena Singh and Sanjay Shahi and begun an investigation.
According to the FIR, Narpat Singh Khangarot, an authorised representative of Baid Finserv Limited, told police that Asra Fincorp Private Limited had applied for a ₹75 lakh loan in 2025. The complaint alleges that the company prepared and submitted allegedly fabricated balance sheets and bank statements to present itself as financially sound and strengthen its loan application.
Based on the documents and other formalities submitted by the company, a loan agreement was executed on July 25, 2025. On July 31, the finance company allegedly disbursed ₹75 lakh to Asra Fincorp’s bank account through three separate loan agreements, with ₹25 lakh released under each agreement. The loan was to be repaid through monthly instalments as specified in the agreements.
The complaint alleges that the company initially paid two instalments but subsequently stopped making repayments. According to the finance company, the third and fourth instalments due on November 1 and December 1, 2025, were not paid. Representatives of the lender allegedly tried to contact the company’s directors after the payments were missed, but their calls reportedly went unanswered.
Algoritha Security Launches ‘Make in India’ Cyber Lab for Educational Institutions
The finance company subsequently issued a legal notice seeking repayment of the outstanding amount and clarification regarding the default. The complaint alleges that no response was received. When representatives of the finance company later visited Asra Fincorp’s office, they allegedly found the premises locked. This raised further concerns about the company’s operations and the manner in which the loan had been obtained and used.
The lender then examined available banking records and transaction details. According to the complaint, Asra Fincorp’s bank statements showed that the company had received substantial amounts as loans from various companies. However, the finance company alleges that the entire amount was not used for extending financial assistance or loans to customers.
The alleged movement of funds subsequently became an important part of the complaint. According to the financial records cited by the complainant, a portion of the money received from other companies was allegedly transferred to bank accounts belonging to Asra Fincorp’s directors, their relatives and acquaintances. The finance company has questioned these transactions and alleged that relevant information regarding the company’s actual financial position and use of funds was concealed while obtaining the loan.
Police are now examining the allegations made in the FIR. The investigation is expected to include scrutiny of the balance sheets and bank statements submitted during the loan application, financial records, income and expenditure documents, the three loan agreements and the banking trail of the ₹75 lakh disbursement.
Investigators are also likely to verify whether the financial documents submitted to the lender were genuine or had been altered or fabricated. The transactions involving the directors, their relatives and acquaintances will also be examined to determine the purpose and destination of the funds.
The banking trail could prove significant in establishing whether the loan amount was used for legitimate business activities or diverted elsewhere. Police may also examine records from the concerned banks and financial institutions to establish the source and subsequent movement of the funds.
The case has also raised questions about the due-diligence process followed before sanctioning large corporate loans. Verification of balance sheets, bank statements, business operations and actual financial activity can be crucial when assessing the repayment capacity of a company seeking financing.
Georgetown police have registered the case against the three accused and started further investigation following the court’s direction. The allegations against Ashok Kumar Singh, Meena Singh and Sanjay Shahi remain subject to investigation and judicial proceedings. The authenticity of the documents, the actual use of the loan amount and the alleged transfers to related individuals will be established through the investigation and evidence placed before the court.
