The Economic Offences Wing (EOW) in Bhubaneswar arrested a former branch manager of Central Bank of India (CBI) for being involved in a loan fraud case worth Rs 1.09 crore. The accused, Swayam Prakash Parida, had been on the run but was caught in Cuttack on Friday.
He will be presented before the SDJM (Sub-Divisional Judicial Magistrate) in Bhubaneswar on Saturday. Parida has already been fired from his job. He used to work as a branch manager at CBI’s Palaspalli branch from May 11, 2015, to November 23, 2017.
During that time, he approved 24 vehicle loans and one CC loan, ranging from Rs 2 lakh to Rs 9.75 lakh, under the ‘Cent Vehicle Schemes’ in the names of different people, using fake documents. The EOW official stated that he conspired with a person named Maitreya Mishra, who was arrested earlier in the same case. They approved loans in the names of various individuals, including fake ones, and then redirected the loan money to different accounts set up by Maitreya Mishra, who pretended to be reputed vehicle dealers like Shree Bharat Motors, City Motors, Aditya Motors, Utkal Automobiles, and Rajpath K.T.M., using fake documents.
After that, the accused credited the approved loan amounts into these different bank accounts and misappropriated the funds, as per the official’s statement.
The EOW found that Rs 1.09 crore was illegally sanctioned and disbursed for the 24 vehicle loans and one CC loan, and the accused was responsible for misusing this money.
The loans were meant for purchasing vehicles, but they submitted fake insurance certificates, cover notes, and payment receipts without actually buying any vehicles. The lender bank didn’t have any collateral security for the loans, making it difficult for them to recover the loan amounts, resulting in a substantial loss for the bank.