The Central Bureau of Investigation (CBI) arrested Prince Kumar Jha, an officer at the Central Bank of India’s Bangra Bazar branch in Deoria, Uttar Pradesh, on Friday. Jha was caught red-handed while accepting a ₹15,000 bribe in connection with the disbursement of a ₹5 lakh Mudra loan.
The arrest took place outside the bank premises in broad daylight after a successful trap was laid by the CBI’s Anti-Corruption Branch. A follow-up search operation was also conducted at his hideouts in the region. The accused will be produced before the CBI Special Court in Lucknow on Saturday.
Bribe Demanded for Releasing Approved Mudra Loan
The complaint was filed by Meraj Alam, a local businessman and resident of Bangra Bazar. He alleged that officer Prince Kumar Jha had demanded a ₹20,000 bribe to release a Mudra loan that had already been sanctioned in the name of his brother for their family-run business, Zakir Hussain Ansari and Meraj Alam Vastralaya.
According to Alam, the loan had been formally approved, and on May 5, 2025, when his brother visited the bank to withdraw the funds, the officer demanded illegal gratification. Disturbed by the demand and unwilling to pay a bribe, Alam approached the CBI.
Swift Action Follows Verification of Complaint
Upon receiving the complaint, the CBI conducted a verification exercise and found the allegations to be credible. A team was dispatched to Deoria, which laid a trap and caught the accused red-handed accepting ₹15,000, a partial amount of the bribe he had demanded. The arrest marks yet another successful action in the CBI’s intensified drive to root out corruption in government-linked financial services.
CBI officials confirmed that the investigation will continue and further evidence, including digital and transaction records, will be examined. The agency is also expected to probe whether other staff members or intermediaries were involved in facilitating such demands from loan applicants.
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Mudra Loans and Corruption Risks
The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme aimed at providing financial support to small entrepreneurs and businesses. However, recent reports have highlighted cases where bank officials misuse their positions to extort bribes from beneficiaries seeking these loans. This case is a stark reminder of the challenges still facing transparency in grassroots banking systems.
Local residents and businessmen in Deoria have expressed support for Meraj Alam’s decision to expose corruption, calling for stricter monitoring of loan disbursement processes and swift justice for those abusing their authority.