A significant loan fraud in Mangaluru has been uncovered, involving fake companies exploiting Central Government loan schemes. The accused allegedly created two bogus small-scale industrial units and, with assistance from a bank official, obtained loans totaling Rs1.3 crore from the State Bank of India’s (SBI) Mallikatte branch.
The fraud was discovered during an internal audit, prompting the bank to file a complaint at Kadri Police Station on September 16. The case was later transferred to the Mangaluru City Crime Branch (CCB), which arrested all the accused, including SBI Relationship Manager Abhishek Nanda.
The arrested individuals include Mohammed Mustafa, Fatima Shabnam, Muneer Kadman, Safiya, and Abhishek Nanda. Police investigations revealed that Mustafa, originally from Puttur and currently residing in Jeppu, applied for loans in the names of M.S. Enterprises and Fusion Dot Enterprises, claiming to establish small-scale industries. Applications were submitted on August 8, 2023.
Nanda verified the applications and falsely confirmed unit inspections, facilitating Rs75 lakh for M.S. Enterprises on September 13, 2023, and Rs55 lakh for Fusion Dot Enterprises the next day. When repayments were not made, an internal inquiry led by Chief Manager Saurabh Kumar revealed that the loan amounts were diverted to personal accounts instead of industrial purposes.
Funds included Rs55 lakh to Fatima Shabnam, Rs32 lakh to Fusion Dot Enterprises (Mustafa’s account), Rs14 lakh to Muneer Kadman, and Rs20 lakh to Safiya. Shabnam and Safiya, a mother-daughter duo, were also arrested. Further investigation revealed large sums credited to Abhishek Nanda’s ICICI Bank account in Mysuru.
Police identified Ashiq as the alleged mastermind, who specialized in setting up fake companies to secure loans through insider connections. He reportedly ran Miles of Files Enterprises in Attavara, listing his wife as the proprietor.
Authorities stated that this group had turned loan fraud into a business, helping multiple individuals illegally access funds under government schemes like Mudra. Several crores are believed to have been misappropriated. All loans sanctioned via Nanda’s recommendations at the Mallikatte branch are now under strict scrutiny.
