A major fake loan fraud has surfaced at the Badgaon branch of a UP Cooperative Bank, where a loan of ₹33.44 lakh was sanctioned and withdrawn in a man’s name without his knowledge. The victim discovered the fraud only after a recovery notice reached his home. Following a court order, an FIR has been registered against a former branch manager and a middleman on charges of cheating and criminal conspiracy.
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The complainant, a resident of Uttar Shukulpurwa in Dhanepur, told police that he was in financial distress when he met Raghvaram alias Raghu, who promised to arrange a bank loan. The victim clearly stated that he owned no land. The accused assured him that he would arrange land documents, sale papers and even prepare a fake Income Tax Return. Gaining his trust, he collected copies of his Aadhaar card, PAN card and photographs.
The middleman later took him to the bank and introduced him to the then branch manager. Some paperwork was completed and the victim was told the loan would be approved. However, when he visited the bank four days later, he was informed that loan processing for the general category had been stopped. Believing the matter had ended, he did not pursue it further.
Nearly a year later, on October 15, 2025, a recovery notice of ₹33,44,160 arrived at his residence, leaving him stunned. When he approached the bank and protested that he had never taken any loan, the branch manager allegedly misbehaved and drove him away. The victim then moved court, which ordered registration of a case.
Police at Kotwali Nagar have booked former branch manager Pawan Kumar Pal and Raghvaram alias Raghu under sections related to fraud and conspiracy. Investigation is underway.
Manager already arrested in ₹21.47 crore scam
The same former branch manager has previously been arrested in connection with a ₹21.47 crore embezzlement at the cooperative bank. A special audit and internal probe had exposed large-scale irregularities, leading to an FIR against 16 people, including three former branch managers. Investigators suspect that multiple fake loans were sanctioned using forged property documents and fabricated financial records.
More accounts under scanner
Police and the bank’s internal teams are now scrutinising all loans approved during the same period. Officials fear that several other individuals may have been similarly duped, with loans taken in their names without consent.
Questions over loan verification controls
The case has raised serious concerns about KYC compliance, property verification and internal checks in cooperative banks. Sanctioning and disbursing a loan without the genuine borrower’s presence points to either gross negligence or collusion.
What to do if a fake loan is taken in your name
- File a written objection with the bank immediately
- Check your CIBIL report and loan statements regularly
- Lodge a police complaint and approach court if needed
- Never share Aadhaar, PAN or document copies with unknown persons
Police said bank records, documentation and transaction trails are being examined, and the role of additional suspects may emerge as the probe progresses.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
