Dena Bank loan fraud may cross Rs 300 crore mark

NAGPUR: The loan fraud at Dena Bank is likely to cross Rs 300 crore mark in the coming days. The bank is expected to file more complaints with the police and the loan cases itself range between several crores of rupees. Sources in the bank said the borrowers, who didn’t pay regular interest, were being investigated. If the banks finds willful defaulters in the probe, they will be booked under relevant sections. The Dena Bank headquarters has already issued a circular in this regard to its regional office and other branches in Nagpur.

After the Nirav Modi case, all banks are following strict procedures to recover their money from borrowers. Even the Central government had directed all the nationalized banks to reduce their NPAs (non-performing assets) by recovering most of the loans.

Bank sources said that banks take properties of equivalent values as mortgage before sanctioning the loans. Thus they can recover their money by selling off the defaulters’ properties. However it has become quite difficult due to slump in the real estate market these days.

All NPA accounts under scanner

Reports say that a fraud of around Rs 90 crore has come to fore from two cases sanctioned from Civil Lines and Dharampeth branches of Dena Bank in Nagpur. Taking serious note of NPAs, the bank initiated enquiry against those borrowers, who haven’t deposited interest amount since a long time. Manager of one of branches in the city told Nagpur Today that every borrower, who has not paid his interest in time, in under the scanner. A few borrowers were found genuine. However, those having suspiciously delayed transactions, were being reported to the headquarters and regional office for suitable action.

More cases will come to fore: Investigating Officer

Investigating Officer IPS Sambhaji Kadam said that police were currently investigating only two cases but they wanted to dig out every truth in the cases. He said police were expecting of more such cases to get registered very soon. He said the two cases were of a fraud of Rs 5 crore.

Wanted accused dies in accident

Sunil Shete, who was accused of a fraud of Rs 2 crore at Dharampeth branch of Dena Bank, was on run from the time the case was filed. However, unconfirmed reports say Shete died in a road accident in Jabalpur on Wednesday.

PCR of accused extended by two days

Meanwhile, the police custody remand of the accused under arrest was extended by two days. Police are also trying to nab the absconding accused.

Bank officials are also on radar

The fraud in Dena Bank is similar to other big cases on the recent national level cases. These cases too display the same modus operandi of getting loan by providing misleading information and submitting manipulated documents. Banks normally do thorough investigation before sanctioning a loan. Despite this fraudulent cases were sanctioned due to the nexus of borrowers and bank officials. Therefore, police are interrogating several bank officials to find out their possible links to the fraud.

By Narendra Puri and Divyesh Dwivedi