Mangaluru Police have uncovered a major loan fraud racket involving the misuse of the MSME loan scheme at the State Bank of India (SBI) Mallikatte branch, with three individuals arrested for swindling over Rs2.5 crore through fake companies and forged documents.
According to City Police Commissioner Sudheer Kumar Reddy CH, the accused floated fictitious firms and submitted fraudulent documents to secure substantial business loans, which were then misused.
Those arrested include:
Muneer Kadaman Abubakkar (53) from Pumpwell
Hussain P (52) from Nandigudde
Mohammed Mustafa (27) from Morgans Gate
The scam came to light after the chief manager of SBI Mallikatte branch filed a complaint on Tuesday. He reported that:
A company named Electro World Enterprises availed a loan of Rs1.2 crore
Another company, MH Enterprises, secured a loan of Rs1.3 crore
Both firms submitted forged documents to receive the loans under the Micro, Small, and Medium Enterprises (MSME) scheme. Instead of using the money for business purposes, the funds were diverted to unrelated bank accounts, causing significant losses to the bank.
Two cases were registered at the Mangaluru East Police Station under Sections 316(2), 316(5), 318(2), 318(3) read with 3(5) of the Bharatiya Nyaya Sanhita (BNS).
In the Electro World Enterprises case, Muneer Kadaman Abubakkar and Hussain P were arrested.
In the MH Enterprises case, Mohammed Mustafa, the owner and prime accused, was arrested.
Investigators discovered that Muneer Kadaman Abubakkar was involved in both fraudulent setups.
The case has now been handed over to the Mangaluru CCB (City Crime Branch) unit for deeper investigation. The possible involvement of bank officials is also being probed, as such a large-scale scam may have required internal collusion.
