Bhubaneswar, April 27: The Economic Offence Wing (EOW), Bhubaneswar on Thursday arrested three persons including a former Bank Manager, in connection with Rs 4.13 crore bank fraud case.
EOW sources here on Thursday said Sk. Abdul Hayee, a Retired Branch Manager of Urban Cooperative Bank Ltd., Cuttack Nuapatna Branch, Prakash Kumar Mohapatra, a former Senior Assistant of Christ College extension counter of the bank and Md. Mustakim Raza, loanee was arrested U/s 409/420/467/468/471/120-B IPC.
A case was registered after Priyabrata Panda, Chief Executive Officer I/c, of the bank in a complaint alleged that from 2019-21, Hayee and Mohapatra have sanctioned eight loans against fake LIC policies amounting to Rs.3.82 crore, the present outstanding of which is now Rs.4.13 crore
The accused bank authorities sanctioned the loan in violation of the banking guidelines without verifying the authenticity of the pledged insurance policies. They went on to renew the loans by sanctioning new loans to close the previous loans.
The arrested accused Md. Mustakim Raza was working as an LIC agent from 2002 to 2022 and he collected the LIC policies from the branch which he forged.
