Bhubaneswar: The Economic Offences Wing (EOW) arrested a person Monday for misappropriating Rs 4.13 crore by sanctioning loans against fake LIC policies during 2019-21.
The accused, identified as Md Iftekhar Asif Khan, was arrested in a case (16/23) registered based on allegations of Priyabrata Panda, chief executive officer of Urban Cooperative Bank Ltd, Cuttack.
Panda had alleged in his complaint that ex-branch manager Sk Abdul Hayee and ex-senior assistant Prakash Kumar Mohapatra of the Cooperative Bank’s Nuapatna Branch had fraudulently sanctioned 25 loans against security of fake and forged LIC policies in connivance with Md Mustakim Raza, Md Sarfaraj Jawed and the arrested accused Md Iftekhar.
Further, the accused persons went on renewing the loans by sanctioning new loans. Iftekhar had availed three loans worth Rs47 lakh against one LIC policy in the name of one Pawan Kumar Gupta. The same insurance policy was also produced as security deposit by other three loanees with changes to their names.
“Out of the 25 loans sanctioned through these fraudulent means, loan amount to the tune of Rs 4.13 crore of eight loans could not be recovered.”
Gyan Ranjan Mohapatra, OP