Cyberabad Police Arrest Eight in SBI Loan Fraud Sanathnagar

Secunderabad: Economic Offences Wing (EOW) of the Cyberabad Police has arrested eight individuals involved in a high-level conspiracy of forgery, cheating, and document fabrication at the SBI Sanathnagar Branch.EOW investigation revealed that the accused had defrauded the bank of Rs 4.8 crore through an elaborate loan fraud scheme.

The arrested accused include former SBI Sanathnagar Branch Manager Karthik Rai, who facilitated fraudulent loans for a 5% commission. Rai was initially arrested by the Sanathnagar Police in May 2024, and the case was transferred to the EOW for further investigation.

EOW investigation revealed that former Branch Manager Karthik Rai exploited the bank’s lending process through fraudulent loan approvals, forged documents, and illegal fund diversions. Between June 2020 and June 2023, Karthik Rai allegedly facilitated unauthorized loans by approving applications backed by falsified salary slips and fake identification documents. In exchange for a 5% commission, Rai misused his position to approve loans without proper verification,enabling large-scale fraud.

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Accomplice role in the scam

The other arrested accused are Md. Wajeed,Mattepally Srishanth, Pole Vishal, Dagala Raju, Sudhansu Shekhar Parida, U. Sunil Kumar, Bhaskar Goud, and Amanchi Upender.
EOW investigation revealed that the accused, led by Md. Wajeed, organized a scheme to secure unauthorized loans. Dagala Raju, a loan agent, recruited individuals posing as employees of the Telangana State Residential School and College for Girls. The loan approvals were obtained using falsified documents in exchange for a commission.

Explaining the role of each accused, Cyberabad police said, “Mattepally Srishanth and Pole Vishal posed as employees of Telangana State Residential School and Colleges for Girls and obtained a loan of 15 lakh each using fake documents.”

Further, Dagala Raju,recruited potential borrowers and explained the loan scheme. Sudhansu Shekhar Parida created forged documents and coordinated with Upender for production. U.Sunil Kumar assisted in recruiting applicants and obtaining fake documentation, and Bhaskar Goud supplied rubber stamps to make the documents credible. Finally, Amanchi Upender created forged salary slips and ID cards added Cyberabad police in an official statement.

Different Modus Operandi

This organized scheme, involving falsified salary slips, fake identity cards, and manipulated documents, exposed severe breaches in verification procedures and internal controls within the bank.
Top-up Loan Deception: Karthik Rai deceived customers by claiming their existing bank loan would be closed and a fresh loan sanctioned. He exploited their trust, approved new loans and diverted the funds to third parties.
Fixed Deposit Diversions: Rai misled customers and transferred their Fixed Deposit amounts to third parties.
Deceased Claims: Upon a customer’s death, Rai claimed the funds without the deceased’s legal heirs’ knowledge.
Mutual Fund Scheme: Rai lured customers with promises of high profits through mutual funds, then diverted the amounts to third parties.
Falsified Loan Applications: Rai sanctioned unauthorized loans totaling over Rs 1 crore (8 loans) backed by forged salary slips and fake documents. He then diverted the amounts to third parties.

The case is being investigated by S. Ravinder, ACP, Economic Offences Wing PS, Cyberabad, under the supervision of K. Prasad, Dy. Commissioner of Police, EOW, Cyberabad.