In a major breakthrough, the Economic Offences Wing (EOW) of the Hyderabad police unearthed a massive Rs4.8-crore loan fraud scheme involving multiple associates at the Sanathnagar branch of the State Bank of India (SBI). Eight individuals have been arrested in connection with the fraudulent activities, which were allegedly facilitated by Karthik Rai, the former branch manager of SBI Sanathnagar.
The Arrested Individuals
The EOW arrested the following individuals involved in the fraudulent loan scheme:
- Mattepally Srishanth,
- Pole Vishal
- Dagala Raju
- Sudhansu Shekhar Parida
- Md. Wajeed
- U. Sunil Kumar
- Bhaskar Goud
- Amanchi Upender
According to the police, Karthik Rai, the former manager at SBI Sanathnagar, was arrested earlier on May 20, 2024, by the Sanathnagar police for his role in facilitating the fraudulent loan disbursements. Rai allegedly arranged loans for ineligible individuals in exchange for a 5% commission on the loan amount
The fraud came to light following a complaint filed by Ramachandra Raghavendra Prasad Paparapatti, the current SBI Manager at the Sanathnagar branch. He reported that a large-scale loan scam had been carried out, involving the issuance of fraudulent loans to unqualified applicants. Rai, who served as the manager, had reportedly used his position to approve these loans, bypassing standard procedures and checks.
The arrested associates, including loan agents and other facilitators, were implicated in forging documents and misrepresenting financial information to make ineligible borrowers appear qualified. In return, they would pocket a commission from the loan amounts.
The investigation revealed that Rs4.8 crore was disbursed in fraudulent loans, with the loans being approved under false pretenses and the proceeds being misappropriated. The EOW officials are continuing to probe the full extent of the scam and are working to identify the full list of victims and other individuals involved in this conspiracy.
Following the arrest of Rai and his associates, the Hyderabad Economic Offences Wing has intensified its investigation into the case. The EOW has urged citizens to report any suspicious activities related to financial fraud and to be cautious when dealing with loan agents and financial institutions.
The arrest of the eight individuals marks a significant step in cracking down on financial crime in the city, and law enforcement officials have assured the public that further arrests are possible as the investigation continues.