MSME Loan Sanctioned But Borrower Gets Neither Funds Nor Machinery In Madhya Pradesh
Bhopal (Madhya Pradesh): Economic Offences Wing (EOW) has busted a loan scam racket in which a fake loan taker, bank officials and suppliers have been exposed, officials said here on Friday. A complaint was received from a businessman stating that an MSME loan of Rs 10 lakh had been sanctioned in his name without his knowledge, and he had received neither the machinery nor the funds.…
In Madhya Pradesh, the Economic Offences Wing has dismantled a loan scam involving a fake borrower, bank officials, and machinery suppliers. A businessman reported that an MSME loan of Rs 10 lakh was granted without his consent, and he received no funds or machinery. Investigation revealed that the borrower's maternal uncle, who had passed away, colluded with the bank branch manager and representatives of two machinery-supplying firms to secure the loan using false documents.
They then siphoned Rs 8,85,000 from the loan for personal use. The bank conducted no inspections, failed to verify machinery suppliers, and bypassed introducing the borrower to the sellers. The transferred funds went to the maternal uncle's and other individuals' accounts. This was not an isolated case; the uncle had five such loan approvals within 10-15 days, though none received machinery.
Three more loans sanctioned by the same branch in March 2024 followed the same modus operandi. Suspects Rahul Bhosale, branch manager, Rajiv Rajput (financial advisor), Naima Ali, and Qamar Ali were arrested under IPC Sections 420 and 120-B.
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