In a significant banking fraud case, the Economic Offences Wing (EOW) in Bhubaneswar has arrested three women officials of the State Bank of India over their alleged involvement in a ₹13.92 crore fake loan scam.
The arrests have exposed a deep-rooted conspiracy involving forged documents, middlemen, and systematic bypassing of internal controls within multiple branches of the bank.
Insider Collusion and Multi-Branch Sanctions
The accused officials have been identified as Baishakhi Saha, Charubala Dandasena, and Sarita Paikaray. According to investigators, the trio, in alleged collusion with intermediaries and other staff members, sanctioned 282 fraudulent Xpress Credit loans between 2022 and 2023 across several branches of SBI in Bhubaneswar, including Rail Vihar, Fortune Tower, Patia, and Damana branches.
Preliminary findings suggest that fake salary slips, fabricated employment records, and forged Know Your Customer (KYC) documents were used to process loan applications. Many beneficiaries were falsely shown as employees of reputed organisations such as Tata Steel, TP Central Odisha Distribution Limited (TPCODL), Vedanta Limited, and Dhamra Port. However, verification later revealed that several of these credentials were completely fabricated.
Officials stated that out of the total sanctioned loans, a large portion became non-performing assets after borrowers defaulted on repayments. The outstanding exposure in the case has been assessed at around ₹6.88 crore, causing significant financial loss to the bank.
Fabricated Documentation and Audit Triggers
Investigators believe that the fraud could not have been executed without the active participation of middlemen who helped generate fake documentation and facilitate loan approvals. The scam allegedly involved multiple layers of deception designed to evade standard banking checks and approval protocols.
The case came to light after a complaint was lodged by SBI’s regional office, prompting a detailed investigation by the EOW. Authorities are now examining digital records, loan processing logs, and internal communication trails to map the full extent of the conspiracy. More arrests are expected as the investigation progresses.
A senior cybercrime and financial fraud expert, former IPS officer Professor Triveni Singh, commented on such cases, stating that insider-driven banking frauds represent a serious systemic vulnerability. He noted, “When internal controls are compromised, fraudsters exploit procedural gaps using forged identities and documents. Such cases require not only forensic financial investigation but also strong human resource audits and continuous monitoring mechanisms within banking institutions.”
Weakened Verification Processes and Fund Layering
Officials further revealed that the fraudulent loans were processed by deliberately weakening verification procedures at various stages. This allowed a large number of applications to bypass scrutiny and get approved without proper due diligence.
Authorities are also investigating the movement of funds after loan disbursal to determine whether proceeds were diverted through layering techniques to conceal the origin of money. Digital forensic teams are assisting in tracking transaction flows across multiple accounts.
Preliminary assessment suggests that the scam may not be limited to the arrested officials alone. Investigators suspect a wider network involving additional bank staff and external agents operating across different locations. The possibility of more arrests cannot be ruled out.
Compliance Gaps and Enhanced Credit Controls
Banking sector experts have warned that such cases highlight critical gaps in internal compliance systems and stress the need for stronger audit mechanisms, stricter verification protocols, and enhanced employee accountability.
The investigation remains ongoing, with authorities focusing on reconstructing the entire fraud chain to ensure all involved individuals are identified and brought to justice.
Experts emphasize that strengthening internal banking audit systems and real-time transaction monitoring could significantly reduce such insider fraud risks. They also suggest stricter verification of loan applicants and enhanced digital authentication at every stage of credit approval processes.
The case has triggered renewed scrutiny of credit lending practices within public sector banks across India. Investigators continue to examine whether similar fraudulent patterns exist in other branches beyond Bhubaneswar region, potentially widening the scope of the probe.
Authorities reiterated that the investigation will focus on identifying every beneficiary and intermediary involved in the scam and ensuring strict legal action against all perpetrators.
