A detailed probe by the Economic Offences Wing has exposed a bank loan fraud involving forged property documents and alleged collusion by bank officials.
The Economic Offences Wing (EOW) in Indore has detected a case in which a ₹40 lakh loan was sanctioned against fake property records. An FIR has been registered against bank officials and a private marketing firm owner on charges of cheating, forgery, and corruption.
The action followed a complaint by the deputy general manager of Canara Bank’s Indore regional office. Investigators found that Chandrashekhar Pachori, operating under M/s Jai Shiv & Company, applied for a ₹40 lakh term loan on 12 April 2018 for purchasing machinery. Rammohan Agarwal was shown as co-obligant, and his property, Plot No 277 in Usha Nagar Extension, was submitted as collateral.
Legal and valuation reports submitted to the bank’s Nanda Nagar branch described the plot as “undisputed” and fit for loan approval. Based on these reports and staff recommendations, the loan was sanctioned on 08 May 2018, according to an official release.
A forensic inquiry later revealed that a multi-storey building with flats and shops had already been built on the plot long before the loan application. The property had been sold to third parties in 2009–10, and by 2018, Agarwal was no longer the legal owner.
Despite these facts, the bank’s internal verification failed, indicating possible deliberate negligence or collusion. The fraud surfaced only after the loan turned into a non-performing asset on 01 May 2023, when instalments stopped. Internal audits then confirmed document forgery.
The EOW has registered offences under IPC Sections 420, 467, 468, 471, 120-B, and Section 7 of the Prevention of Corruption (Amendment) Act 2018.
Those named in the FIR are Chandrashekhar Pachori (borrower), Rammohan Agarwal (co-obligant), Jatin Gupta (then branch manager), Kamlesh Diwani (then credit manager), and the proprietor of a private marketing firm.
The investigation is ongoing to determine the full extent of the fraud and the role of each accused.
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