By P. Aparajitha (Sem. I)
The Economic Offences Wing of Cyberabad police on 6th November arrested eight individuals, including a former branch manager, in connection with a ₹4.8-crore loan fraud that exploited the lending protocols of the State Bank of India (SBI) at Sanatnagar branch. Those arrested include Karthik Rai, a former branch manager, along with seven accomplices who allegedly facilitated and orchestrated the large-scale scam.
The scam came to light following a complaint by SBI Sanattnagar branch manager Ramachandra Raghavendra Prasad Paparapatti, prompting an EOW investigation. The arrested individuals—Mattepally Srishanth, Pole Vishal, Dagala Raju, Sudhansu Shekhar Parida, Md. Wajeed, U. Sunil Kumar, Bhaskar Goud, and Amanchi Upender—are accused of forging loan documents and diverting funds to unauthorised accounts.
According to police, the activity took place between June 2020 and June 2023. Karthik Rai, who allegedly received a 5% commission on each fraudulent loan, approved applications that included falsified salary slips and fake identification documents. This enabled loans to be sanctioned without necessary verification protocols. In total, ₹4.8 crore was distributed across 67 accounts through unauthorised loans.
The operation was led by Md. Wajeed, with assistance from Dagala Raju, a loan agent. Together, they recruited Mattepally Srishanth and Pole Vishal, who posed as employees of Telangana State Residential School and College for Girls to obtain loans using fabricated documents. Sudhansu Shekhar Parida managed the creation of fake salary slips and ID cards, while Amanchi Upender, owner of a Xerox shop in Prakash Nagar, supplied falsified identification. Bhaskar Goud, a stamp maker, provided rubber stamps used to authenticate forged documents.
In total, ₹4.8 crore was distributed across 67 accounts through unauthorised loans.
With Karthik Rai’s approval, the group secured ₹1.02 crore across eight loans by falsifying borrower identities and employment information. The conspirators retained a 30% share of each loan amount, resulting in a total collection of ₹30 lakh, which was subsequently divided and transferred to third-party accounts.
During the investigation, certain other cases of fraud committed by Rai also came to light. He allegedly deceived customers by claiming that their existing loans would be closed and replaced with new, larger loans. These new loans were then diverted to third parties. Additionally, he is accused of transferring customers’ fixed deposit funds to unauthorised accounts under the guise of lucrative mutual fund investments. Rai had misappropriated funds following the death of customers, claiming account balances without notifying the legal heirs of the deceased.