Mangaluru: The Mangaluru police have cracked a major loan fraud racket in which fake companies were floated and forged documents used to siphon off over Rs 2.5 crore from the State Bank of India’s Mallikatte branch under the MSME scheme. Two separate cases have been registered in connection with the scam.
Details of the fraud
The accused, identified as Muneer Kadaman Abubakkar, 53, from Pumpwell, Hussain P, 52, from Nandigudde, and Mohammed Mustafa, 27, from Morgans Gate, were arrested by the city police. The scam came to light following a complaint filed on Tuesday by the chief manager of SBI, Mallikatte branch.
According to the complaint, under the MSME scheme, the firm Electro World Enterprises submitted forged documents to obtain a loan of around Rs 1.2 crore. Similarly, another company, MH Enterprises, secured a loan of approximately Rs 1.3 crore using falsified paperwork. The accused allegedly diverted these funds into different bank accounts rather than using them for the intended business purposes, causing substantial financial losses to the bank.
Investigation and arrests
City Police Commissioner Sudheer Kumar Reddy CH confirmed that the involvement of certain bank officials is under suspicion and is being investigated. Based on the complaint, two separate 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.
In one case, prime accused Muneer Kadaman Abubakkar and his associate Hussain P were arrested. In the other case involving MH Enterprises, the owner Mohammed Mustafa was taken into custody. Investigations revealed that Muneer Kadaman Abubakkar had links to both fraudulent operations.
Further investigation
Both cases have now been handed over to the Mangaluru Crime and Criminal Branch (CCB) unit for further detailed investigation. Police officials are probing the extent of the racket and the potential involvement of bank staff in facilitating the fraud.
Conclusion
The swift action by Mangaluru police has highlighted the risks associated with fraudulent MSME loans and reinforced the need for stringent verification measures by banks. The ongoing investigation aims to ensure that all individuals involved in this multi-crore scam are brought to justice and that the diverted funds are traced and recovered.