A loan scam worth more than ₹5.49 crore has been reported at the Ashoknagar branch of Punjab National Bank (PNB). After a preliminary investigation, the Economic Offences Wing (EOW) found irregularities in the loan process and registered an FIR against 11 people. The accused include the then branch manager, warehouse operators, employees of NCML, and several loan beneficiaries.
This branch of Punjab National Bank falls under Gwalior circle. Gwalior is approximately 240 kms from Ashoknagar while Bhopal is around 200 kms from Ashoknagar.
Loans Given to Ineligible Beneficiaries
According to the EOW, loans worth over ₹5.49 crore were sanctioned to ineligible beneficiaries between 2016 and 2019. Investigators believe the loans were approved through the alleged collusion of bank officials and others, causing a major financial loss to the bank. A detailed investigation is now in progress.
How the Investigation Started
The complaint was filed by the current branch manager of PNB’s Ashoknagar branch. After receiving the complaint, the bank’s Bhopal headquarters conducted a preliminary inquiry and later handed the case over to the EOW, Gwalior.
During the investigation, the EOW found that the then branch manager, Nitin Jaiswal, allegedly worked with NCML employees Rajkumar Meena and Sachindra Jain, along with warehouse operators Rajendra Kumar and Shreyansh Kumar, to sanction loans to people who were not eligible.
Food Grains Released Without Loan Repayment
The investigation found that food grains kept in the warehouse as collateral were released even though the borrowers had not repaid their loans. This resulted in a financial loss of around ₹5.49 crore to Punjab National Bank.
Officials also said that the beneficiaries neither repaid the loans nor submitted valid applications for the release of the pledged food grains.
Major Irregularities Found
The EOW found several violations during the investigation. According to officials:
- The CIBIL reports of the beneficiaries were not checked before approving the loans.
- The warehouse stock and stock registers were not properly inspected.
- Food grains were released without issuing the mandatory letter to the collateral manager, as required under the rules.
FIR Registered
Based on the findings, the Economic Offences Wing has registered an FIR against the accused under various sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act. The agency is continuing its detailed investigation to determine the role of all those involved in the alleged scam.
