One arrested for bank fraud

Economic Offences Wing (EOW) of Odisha Crime Branch on Wednesday arrested a man on charges of fraud.

Published: 01st March 2018 02:58 AM  |   Last Updated: 01st March 2018 04:01 AM   |  A+A-

By Express News Service

BHUBANESWAR: Economic Offences Wing (EOW) of Odisha Crime Branch on Wednesday arrested a man on charges of fraud. He has been identified as Lalit Mohan Mohanty of Chandbali in Bhadrak district.
The agency had earlier taken up investigation of the alleged loss of depositors’ money at Urban Cooperative Bank Limited in Bhubaneswar. Subsequently, EOW had registered a case in 2015 under different sections of Prevention of Corruption Act.

According to EOW officers, loans were sanctioned by the bank officials, including Mohanty, fraudulently and without following appropriate procedures. The bank officials were allegedly hand-in-glove with the persons, who took the loans by submitting fake and forged documents and against inadequate securities. The bank officials had sanctioned loans without proper documentation or verifying documents, which hit the business of the financial institution along with causing losses to the depositors.

EOW officers had earlier arrested the bank’s the then branch manager (Old Town), Udaynath Sahu, the then secretary, Bharat Bhusan Jagdev and former secretary of the bank, Santanu Kumar Mohanty, on January 13, 2016.“Mohanty was nabbed recently and he was produced in a court here on Wednesday,” an EOW officer said. The Reserve Bank of India (RBI) had cancelled the licence of Bhubaneswar Urban Cooperative Bank in 2014 due to its deteriorating financial position.

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