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SALEMPUR (DEORIA) — Police have registered a case against six persons, including a local trader’s son and an Axis Bank branch manager, for allegedly securing a loan of approximately ₹55 lakh by fraudulently mortgaging family property in the name of a deceased woman. The action in Deoria district followed direct instructions from a local court after the complainant discovered the alleged fraud upon receiving an auction warning notice from the lending institution.
The complainant, Paras Nath Gupta, operates a retail shop selling luggage and plastic goods near Gandhi Chowk and resides in Thakur Nagar, located in the Pipra Nazir area of Salempur. According to his petition before the court, his wife, Rajkumari Devi, passed away in November 2025 following a prolonged illness. Gupta stated that before her demise, his wife had formally bequeathed all family immovable assets to him through a registered will, leaving him as the sole legitimate owner of the holdings.
Forged Ownership Papers Used for Bank Loan
According to the police complaint, Gupta’s son, Jitendra Kumar, entered into a criminal conspiracy with the manager of the Axis Bank branch located in the Taramandal area of Gorakhpur shortly after his mother’s death. Kumar allegedly produced falsified property papers before the financial institution, representing the deceased woman’s assets as his own legitimate holdings to secure credit.
Relying on these disputed submissions, the bank sanctioned and disbursed a loan amounting to ₹55 lakh against the mortgaged property. The complainant asserted that the loan approval was granted without verifying the actual legal ownership of the premises or securing his consent. He stated that his son held no legal authorization to pledge the bequeathed property, adding that the paperwork presented to the branch omitted the existence of the prior will executed by Rajkumari Devi.
Auction Notice Alerted Victim to Transaction
The transaction remained concealed from the father until the bank initiated loan recovery proceedings. Gupta learned of the outstanding liability only after receiving an official phone call followed by a formal warning notice, which stated that the family property would be put up for public auction if the pending dues were not settled immediately.
The threat of property attachment prompted Gupta to inspect the matter, revealing that his residential and commercial premises had been pledged without his knowledge. He initially approached the Superintendent of Police seeking an inquiry into the fraudulent mortgage. After failing to secure prompt administrative relief, he moved the jurisdictional court, alleging that bank officials had colluded with his son to approve the credit facility on forged documentation.
Police Launch Inquiry into Institutional Verification
Acting on the court’s order, the Salempur police registered an FIR against six persons, including Jitendra Kumar and the Axis Bank manager, on charges of cheating, criminal conspiracy, and forgery of valuable security. Investigating officers have requisitioned the complete loan docket from the Gorakhpur branch, including the original title deeds, valuation reports, and identity records submitted during processing.
The investigation will examine whether the bank followed mandatory due diligence protocols prior to mortgage creation, including the verification of title ownership and encumbrance checks. Police are also examining the role of four other intermediaries named in the complaint to determine who facilitated the preparation of the forged instruments. Official sources stated that all allegations remain subject to ongoing scrutiny, with forensic verification of the documents expected to establish institutional accountability in the loan sanction.
