The Economic Offences Wing of the Odisha Crime Branch has arrested a former UCO Bank branch manager in connection with an alleged loan fraud exceeding ₹3.25 crore. The accused was arrested from Trisulia in Cuttack after investigators alleged that fake car loans and business loans were sanctioned between 2021 and 2025 through manipulated records and forged documentation.
The accused has been identified as Siba Prasad Das, who earlier served as branch manager at UCO Bank’s Old Secretariat branch and later at the Salepur branch.
Fraud Allegedly Came to Light During Internal Review
According to officials, the alleged irregularities surfaced during an internal review conducted around two months ago. Following the findings, the accused was placed under suspension.
The formal investigation began after UCO Bank’s Deputy General Manager and Zonal Head in Cuttack lodged a complaint on June 19.
The complaint alleged that official records were manipulated to approve 24 loans with a combined value of ₹3,25,43,000. These included 22 vehicle loans and two business loans.
Fake Vehicle Quotations and Forged Loan Papers Under Scanner
During the investigation, EOW officials allegedly found that fabricated vehicle quotations were used to process and approve car loans.
Investigators further alleged that several loans were sanctioned for vehicles that had already been purchased, but were falsely presented as new vehicles to obtain loan approvals.
The agency also claimed that CIBIL reports, registration certificates, KYC documents, insurance papers, salary slips and other supporting records were forged or tampered with to bypass internal verification procedures.
Loan Amounts Allegedly Routed to Accused’s Personal Accounts
Preliminary findings suggest that the full loan amount of more than ₹3.25 crore was allegedly transferred into the personal bank accounts of the accused.
Investigators also alleged that savings accounts were opened in the names of certain borrowers without mandatory KYC documentation. These accounts were reportedly used to create a repayment structure for the fraudulently sanctioned loans.
According to the EOW, instalments deposited into those accounts were allegedly funded by the accused himself to create the appearance that the borrowers were regularly repaying their loans.
Branch-Wise Loan Details Under Investigation
The EOW stated that out of the 24 allegedly fraudulent loans, 16 loans worth over ₹1.85 crore were sanctioned during the accused’s tenure at the Salepur branch.
Another eight loans worth more than ₹1.39 crore were allegedly approved while he was posted at the Old Secretariat branch.
Investigators are now examining whether the alleged fraud was carried out independently or with the involvement of other bank officials, intermediaries or external individuals.
Loan Files and Forged Documents Seized
During searches, investigators seized 24 loan files along with allegedly forged salary slips, fabricated vehicle quotations and other supporting documents connected to the case.
These documents are being sent for forensic examination to determine the full scope of the alleged fraud and establish how the loan approvals moved through the bank’s internal system.
Officials said further legal action will depend on the findings of the financial investigation, forensic report and additional evidence collected during the probe.
Banking Fraud Highlights Need for Stronger Internal Controls
The case once again underlines the importance of strong verification systems inside financial institutions. Loan frauds involving forged documents, fake borrower profiles and manipulated repayment trails can remain hidden for years if internal controls are weak or poorly monitored.
Periodic reviews, document authentication, maker-checker controls and independent auditing services in india can help banks and businesses identify suspicious patterns early, especially where loan files, KYC documents and repayment activity do not align with genuine borrower behaviour.
Conclusion
The alleged ₹3.25 crore UCO Bank loan fraud shows how internal access and document manipulation can expose financial institutions to major losses. As investigators continue to examine seized loan files and digital records, the case may reveal whether the fraud was limited to one official or involved a wider network.
For banks and lending institutions, the incident is a reminder that fraud prevention must begin at the loan origination stage itself, with strict KYC checks, verified documentation and continuous internal monitoring.
Shunyatax Global Insight
Banking fraud often becomes possible when operational authority, documentation control and financial approval remain concentrated in the same hands without adequate independent review. In loan-related cases, forged KYC documents, fabricated income proof and manipulated repayment trails can create a false picture of compliance while hiding the real financial exposure.
Shunyatax Global believes that financial institutions must strengthen branch-level governance through independent file reviews, borrower verification, document forensics and real-time exception reporting. Professional auditing services in india can play a critical role in detecting irregular loan patterns, validating internal controls and preventing financial misconduct before it grows into a large-scale fraud.