Thiruvananthapuram: Bank of Maharashtra has included alleged key accused Jenny Varghese in its fraud list in connection with an alleged scam in which the identity documents of people with low CIBIL scores were obtained and used to secure loans worth crores in their names without their knowledge.
Three bank officials have also been included in the fraud list for allegedly assisting the loan process and facilitating the fraud. The bank has recommended an investigation by the Central Bureau of Investigation (CBI) and the police.
The investigation has revealed that the alleged gang targeted people with weak CIBIL scores. It is alleged that after obtaining their Aadhaar and other identity documents, loans were sanctioned in their names without their knowledge or consent. Several victims reportedly came to know about the loans only after receiving payment or recovery notices from banks.
The alleged fraud is suspected to have spread across multiple banks. According to information that has emerged so far, irregularities of around ₹700 crore across various banks may be linked to the network. Investigators suspect that the documents were not used at only one bank and are examining the possibility that loans were obtained through a similar method from other financial institutions as well.
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Jenny Varghese, a resident of Ernakulam, has been identified as the alleged key figure in the network. According to the investigation, the lending systems of several nationalised banks in Kochi were allegedly used for the fraud. It is alleged that some bank employees and officials also played a role in the operation of the loan accounts. Their alleged involvement has therefore become an important part of the investigation.
Bank of Maharashtra is estimated to have suffered a loss of around ₹72 crore in the case. The bank’s fraud monitoring group reviewed transactions linked to 14 loan accounts and found that the bank had suffered a loss of approximately ₹72 crore. Following the assessment, the bank decided to include Jenny Varghese and three bank officials in its fraud list.
The gang allegedly first collected information about people with low CIBIL scores. Their Aadhaar and other identity documents were then obtained. These documents were allegedly used to prepare loan applications and other paperwork. After the loans were sanctioned, the money was allegedly routed to individuals or entities linked to the network, while the people in whose names the loans had been taken remained unaware of the transactions.
The case came to light after some individuals received bank notices about loans taken in their names. The concerned people denied having applied for or taken the loans. This led to scrutiny of the documents, loan accounts and financial transactions. As similar irregularities were reported at different banks, investigators began suspecting that the cases could be part of a larger organised network.
Bank of Maharashtra initiated further action after completing its internal investigation. Its Pune headquarters instructed zonal-level officials to take necessary steps in the matter. The bank has also recommended a detailed investigation by the CBI and the police to identify other people allegedly linked to the network and trace the flow of funds.
The inclusion of three bank officials in the fraud list has raised questions about possible insider involvement in the loan approval process. However, the exact role of each official, the accounts they allegedly handled and whether they received any financial benefit from the alleged fraud will become clear only after the investigation is completed. Bank records and documents linked to the loan accounts are currently being examined.
The alleged ₹700 crore fraud has also raised concerns about the security of identity documents and safeguards in the loan approval process. Taking a loan in someone’s name without their knowledge can cause not only financial losses but also damage to their credit record and future ability to obtain loans. The alleged targeted use of documents belonging to people with low CIBIL scores has further raised concerns that criminals may have deliberately selected individuals with weaker credit profiles.
Investigating agencies now face the challenge of determining the full extent of the alleged network. The probe is expected to establish how many people’s documents were used, which banks and branches sanctioned the loans, where the money was ultimately transferred and how extensive the alleged involvement of bank officials was. Investigators will also assess the actual financial loss involved in the alleged ₹700 crore fraud across banks.
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