A shocking case of bank loan fraud has come to light at the Badgaon branch of a UP Cooperative Bank, where a loan of ₹33.44 lakh was sanctioned and withdrawn in a man’s name without his knowledge. The fraud surfaced only when a recovery notice of ₹33,44,160 reached his home nearly a year later. Following a court order, police have registered an FIR against former branch manager Pawan Kumar Pal and a middleman, Raghvaram alias Raghu, on charges of cheating and criminal conspiracy.
The complainant, a resident of Uttar Shukulpurwa in Dhanepur, told police that he was facing financial hardship when he met Raghu, who promised to arrange a bank loan. The victim clearly stated that he owned no land. The accused allegedly assured him that land papers, sale documents and even a fake Income Tax Return would be arranged. After gaining his trust, copies of his Aadhaar card, PAN card and photographs were collected. He was later taken to the bank and introduced to the then branch manager. Some paperwork was completed and he was told the loan would be approved. However, when he visited again after 4 days, he was informed that loan processing for the general category had been stopped. Assuming the matter had ended, he did not follow up.
On October 15, 2025, the recovery notice arrived, leaving him stunned. When he approached the bank and said he had never taken any loan, the branch manager allegedly misbehaved and asked him to leave. The victim then approached the court, which directed police at Kotwali Nagar to register a case. Investigation is ongoing. Notably, the same former branch manager was earlier arrested in a ₹21.47 crore embezzlement case at the cooperative bank. A special audit had revealed large scale irregularities, leading to an FIR against 16 individuals, including 3 former branch managers. Investigators suspect multiple fake loans were approved using forged property papers and fabricated financial records.
Authorities are now reviewing all loans sanctioned during that period, fearing more victims. The case has raised serious concerns about KYC compliance, property verification and internal controls in cooperative banks. Police are examining bank records, documents and transaction trails and the role of additional suspects may emerge. Citizens are advised to immediately file a written objection with the bank if a fake loan is detected, regularly check CIBIL reports, lodge a police complaint if required and never share Aadhaar, PAN or personal documents with unknown persons.
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