Lucknow: An alleged ₹1.56 crore loan fraud has come to light at the Gomti Nagar branch of Nainital Bank in Uttar Pradesh’s Lucknow after an internal audit uncovered an organised scheme involving fake property owners and forged documents. According to the bank, eight housing loans and one cash credit facility were fraudulently sanctioned using fabricated ownership records and forged paperwork. The bank has declared all nine loan accounts as fraud and classified them as Non-Performing Assets (NPAs). An FIR has also been lodged at the Gomti Nagar police station.
According to the bank’s investigation, between January and May 2025, individuals posing as the rightful owners of several properties applied for loans using forged identity documents, fabricated ownership records and other falsified paperwork. The preliminary inquiry also revealed that in several cases, the properties shown as mortgaged in favour of the bank were not legally valid mortgages, raising serious concerns about the authenticity of the loan documentation.
The internal audit further detected major irregularities in the legal due diligence and property valuation reports submitted during the loan approval process. In several instances, property ownership, addresses and supporting documents were either inadequately verified or could not be authenticated. Despite these discrepancies, the loans were approved. Investigators also found that some mortgage documents executed in favour of the bank did not meet legal requirements, casting doubt on the integrity of the entire loan sanctioning process.
The bank’s inquiry has also uncovered another significant aspect of the alleged fraud. Some of the accused reportedly appeared as witnesses in multiple loan transactions, suggesting that the cases may not be isolated incidents but part of a coordinated and organised fraud network. Police are now investigating whether only external individuals were involved or whether anyone connected to the banking process also played a role in facilitating the alleged scam.
Following the findings, the bank classified all nine accounts as fraudulent and placed them in the NPA category. Relevant information and audit findings have also been shared with the concerned authorities. Police have begun examining loan files, banking records, financial transactions and supporting documents to determine how the forged paperwork passed verification and identify everyone involved in the alleged conspiracy.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said that organised financial fraud involving forged identities and fabricated property documents has become increasingly sophisticated. He noted that robust digital document verification, enhanced Know Your Customer (KYC) procedures, online verification of land and property records, and scientific analysis of financial transactions are crucial for exposing such organised fraud networks and preventing similar crimes in the future.
Police are currently scrutinising the audit report and all documents submitted by the bank. Investigators are expected to question the actual property owners, individuals who prepared the documents, witnesses involved in the transactions, and others connected to the loan approval process. If the investigation uncovers evidence of a larger criminal network or the involvement of additional suspects, the scope of the probe is likely to be expanded. Authorities have stated that further legal action will be taken based on the evidence collected and that all those found responsible will face strict action under the law.
