Private bank alleges ₹4.49 crore personal loan fraud
A private bank has filed a complaint regarding a ₹4.49 crore fraud involving 61 forged loan closure certificates. Cyber crime police are investigating how these documents were used to bypass bank norms and secure personal loans.
Why it matters
This case exposes vulnerabilities in digital banking verification processes and the potential for large-scale financial fraud.
The Cyber Crime police have registered a case following a complaint by a private bank alleging a fraudulent scheme involving forged loan closure certificates that enabled the wrongful sanction of personal loans worth ₹4.49 crore.
According to the complaint filed by Sudheer Kumar K., an authorised representative of the bank, the fraud came to light after the bank received a whistleblower complaint alleging that fake Loan Closure Certificates/No Due Certificates (NDCs) had been used to secure personal loans.
An internal investigation by the bank reportedly confirmed the allegations. The inquiry revealed that while several loan applications were initially supported only by salary slips and bank statements, they were rejected for failing to meet the bank’s Fixed Obligation to Income Ratio (FOIR) norms. Subsequently, forged loan closure certificates were allegedly created and uploaded during the rework stage to facilitate approval of the loan applications.
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