A case involving alleged fraud in the sanction and disbursement of MSME loans has come to light in Bhopal, Madhya Pradesh. The Economic Offences Investigation Bureau (EOW) has registered an FIR against five people, including the then branch manager of Bank of Maharashtra’s MP Nagar branch.
According to the EOW investigation, an MSME loan of ₹10 lakh was allegedly sanctioned in the name of a businessman without his proper knowledge or consent. Out of this amount, ₹8.85 lakh was released for the purchase of machinery. However, the businessman allegedly never received the machine.
How the Loan Fraud Came to Light
The matter came to light after the businessman learned that a loan had been taken in his name. He subsequently approached the EOW and filed a complaint.
During its investigation, the EOW found prima facie evidence indicating alleged fraud and criminal conspiracy in the processing and disbursement of the loan.
According to the investigation, the businessman’s maternal uncle allegedly arranged the loan in connivance with the then branch manager of Bank of Maharashtra’s MP Nagar branch and people associated with machinery-supplying firms.
Loan Documents Were Submitted to the Bank
The EOW investigation found that loan-related documents had already been submitted to the bank. On March 21, 2024, the businessman was called to the bank, where he was allegedly made to sign the documents.
One of the major concerns raised during the investigation was the speed at which the loan was processed. According to the EOW, the entire process, from loan application to disbursement, was completed within only three to four hours.
The agency also alleged that the bank did not inspect the borrower’s business premises before sanctioning the loan. The address of the machinery supplier was also allegedly not properly verified.
Fake Margin Money Receipts Allegedly Used
The investigation also raised questions about the margin money shown in the loan records.
Two receipts, for ₹4 lakh and ₹1.15 lakh, were prepared to show the payment of margin money to Vishal Enterprises. However, the EOW said that during its investigation, it could not find corresponding entries for these payments in the bank account of Vishal Enterprises.
The investigation also did not find the alleged amounts in the accounts of the complainant or his family members.
This raised suspicion regarding the genuineness of the documents and transactions submitted in connection with the loan.
Machinery Supplier’s Address and GST Details Under Question
The EOW investigation also examined the details of Vishal Enterprises, which was shown as the machinery supplier in the bank’s records.
According to the agency, the address of Vishal Enterprises mentioned in the loan documents was found to be fake during the investigation.
The GST number mentioned in the firm’s documents was also allegedly registered in the name of another person. The EOW further stated that the owner details appearing on the GST portal did not match the name shown in the bank’s records.
Despite these alleged discrepancies, the loan was sanctioned and the money was released.
Loan Money Transferred Through Different Accounts
The loan amount was transferred to the account of Vishal Enterprises for purchasing the machinery. However, according to the EOW, the complainant did not receive the machine.
The investigation alleged that the money was subsequently transferred through Global Marketers to the bank account of the complainant’s mother. From there, the money was allegedly transferred to the accounts of the complainant’s maternal uncle and other persons identified during the investigation.
The EOW found several transactions during its investigation.
On March 18, 2024, an amount of ₹3.91 lakh was transferred, while ₹3 lakh was transferred on March 22, 2024.
On the day the loan amount was received, ₹50,000 was allegedly transferred to financial advisor Rajiv Rajput, while ₹2.46 lakh was allegedly transferred to the complainant’s maternal uncle.
Firm Operator Allegedly Admitted to the Transaction
During the investigation, an operator associated with the firm allegedly admitted that money had been sent in connection with the machinery transaction.
According to the EOW, the operator also stated that he received ₹40,000 from the transaction.
The findings are part of the agency’s investigation into the alleged movement of the loan money and the role of different persons involved in the transaction.
Machine Was Not Available but Insurance and CERSAI Registration Were Done
Another issue identified during the investigation was that the machinery allegedly did not exist or was not made available to the borrower, yet it was insured and registered with CERSAI.
The insurance premium was also deducted from the complainant’s account.
According to the EOW, the complainant’s maternal uncle and an acquaintance later continued paying the loan instalments. They allegedly told the businessman that the loan had already been closed.
However, the businessman later received a call from the bank in July 2024 asking him to deposit the loan instalment. This was when he reportedly came to know that the loan had not actually been closed.
Similar Loans Disbursed From the Same Branch
The EOW investigation also found that the matter may not have been limited to a single loan.
According to the agency, five loans were disbursed from the same branch in March 2024 using a similar method. These loans were allegedly processed within a period of around 10 to 15 days.
The investigation also found alleged irregularities in three other cases.
In one case, a printing press operator received a loan of ₹9.90 lakh along with a cash credit (CC) limit of ₹4 lakh.
In another case, a woman was sanctioned a loan of ₹7 lakh, but according to the investigation, she did not receive the machinery for which the loan was sanctioned.
In a third case, a young man had approached the bank for a home loan. However, the EOW alleged that ₹2.40 lakh taken from him as margin money was instead used in connection with an MSME loan without his consent.
According to the EOW, the loans involved in these cases subsequently became non-performing assets (NPAs).
Five People Named in EOW FIR
The EOW Bhopal registered an FIR on September 17, 2026, under Crime No. 99/2026.
The five people named in the case are:
- Rahul Bhosale, the then branch manager of Bank of Maharashtra’s MP Nagar branch
- Rajiv Rajput, financial advisor
- Naima Ali, proprietor of Vishal Enterprises
- Qamar Ali, director
- Omar Ali, proprietor of Global Marketers
The case has been registered under Sections 420 and 120-B of the Indian Penal Code, relating to cheating and criminal conspiracy, respectively.
EOW Investigation Is Still Underway
The allegations relate to the use of loan documents, GST details, supplier information and bank transactions in connection with MSME loan sanctions and disbursements.
The EOW has said that its investigation is still ongoing. The registration of an FIR and the allegations in the investigation do not by themselves establish guilt, and the allegations against the accused will be subject to the further investigation and legal proceedings.
