CID Arrests Five More People in Rs 2.86 crore Loan Fraud in IDBI Bank
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The Crime Investigation Department (CID) has made five more arrests in a case involving a bank fraud, where individuals are accused of cheating IDBI Bank to approve loans totaling Rs 2.86 crores by breaking the bank’s rules and regulations.
Details of the Arrests
The CID arrested five individuals: B Vengal Rao, B Jaganatham, Y Haribabu, M Rajashekhar, and P Konda Babu. All five are from the Bhadradri Kothagudem district. These individuals are believed to have played a key role in creating fake documents and seals used to process the fraudulent loans. They have been presented before a Magistrate and placed under judicial remand.
Background of the Fraud
According to the CID, the fraud began when Nallagopula Ramesh, who was the Branch Head at the Sattupalli IDBI Bank, worked with Business Correspondent Chettipogu Suresh and others to approve fraudulent loans. They managed to sanction Rs 2.61 crores worth of loans under the Kisan Credit Card (KCC) Scheme to 279 borrowers. Additionally, Rs 25 lakh was approved under the Micro Loans Scheme for 26 individuals. This activity occurred between March 2015 and September 2016.
Discovery of the Fraud
The fraud was uncovered during an internal audit conducted for the 2018-2019 fiscal year, focusing on the KCC Loans. The audit revealed several irregularities, including suspicious financial transactions between Chettipogu Suresh and the then-Branch Head Nallagopula Ramesh. Further investigation revealed that the documents submitted to the bank, including the pattadar passbooks (land ownership records), were fake and did not match the official records.
CID Investigation and Previous Arrests
Following this discovery, the bank reported the issue to the revenue authorities, who confirmed the documents were fraudulent. The CID then took over the investigation, leading to the earlier arrests of Nallagopula Ramesh and Chettipogu Suresh. Both have already been sent to judicial remand, and the investigation continues as more details emerge about the fraud.
