HYDERABAD: The Cyberabad police have arrested eight people in connection with a large-scale loan fraud scheme carried out at the Sanathnagar branch of State Bank of India. The accused allegedly defrauded the bank of Rs 4.8 crore.
A former manager at the bank, Karthik Rai, was previously arrested by the Economic Offences Wing for allegedly taking a 5% commission and approved loans without following proper verification protocols over a span of three years.
“The accused conspired to exploit the bank’s lending process through fraudulent loan approvals, forged documents and illegal fund diversions,” the police said.
Among those arrested on Thursday, two individuals posed as employees of the Telangana State Residential School and Colleges for Girls and obtained loans of Rs 15 lakh each using fake documents. Other members of the group were involved in forging documents and recruiting potential borrowers for loan schemes.
The fraud was carried out through 67 accounts, using multiple fake loan schemes to deceive both customers and the bank, the police said.
Karthik introduced clients to the schemes, took money from them and diverted funds to third parties.
The entire scam was allegedly coordinated by Md Wajeed, who then roped in a loan agent who recruited people to pose as customers seeking loans. The accused persons collected a 30% share of the loan amount, totalling Rs 30 lakh, the police said.