Jammu and Kashmir Police’s Crime Branch registered a first information report on Sunday over suspected fake loan accounts and unauthorised transactions totalling more than Rs 68 lakh at a bank, according to the Indian Express. The case, filed by the Economic Offences Wing in Jammu, emerged from an internal vigilance inquiry and involves two separate branches.
Fraud at the Kaluchak Branch
At the Kaluchak branch, investigators found that 58 loan accounts under 15 joint liability groups and two cash credit limit accounts were allegedly opened without the knowledge or consent of the account holders. The suspected fraud at this branch amounted to approximately Rs 42 lakh.
Around Rs 12 lakh from those accounts was allegedly diverted to bank accounts reportedly held in the name of a deceased senior manager, while the remaining loan amounts were allegedly withdrawn through ATMs. In one instance, a daily wager at the branch allegedly admitted to using Rs 2 lakh in loan proceeds from one joint liability group account for personal use, and recovery was subsequently made in two accounts.
Surankote Branch Irregularities
A separate complaint covers the Surankote branch, where five fake loan accounts were allegedly opened without borrowers’ knowledge, resulting in fraudulent loan withdrawals of about Rs 19 lakh. Unauthorised transactions and debits at that branch amounted to a further Rs 7.37 lakh. Investigators found that the accounts had allegedly been shown as settled or closed in order to reconcile the branch’s cash position.
How the Case Came to Light
The fraud was uncovered through an internal vigilance inquiry. Complaints were filed by the bank’s chief of audits, inspection and vigilance, and forwarded through the Anti-Corruption Bureau director before reaching the Crime Branch. Police at the Economic Offences Wing registered the case after preliminary verification disclosed prima facie commission of cognisable offences.
SSP Faisal Qureshi of Crime Branch (EOW) Jammu urged members of the public to report similar cases so that those responsible are brought to justice.
