Bank manager, two associates arrested for fraud

A senior manager of UCO Bank was arrested along with his two associates for getting loans sanctioned on fake documents, police said Saturday.

Rama Chandra Dash, 56, the manager of the bank in east Delhi's Laxmi Nagar area, would sanction the loans in connivance with his associates - Subodh, 30 and Sunny Rakhrai, 29.

According to police, Subodh, an MBA from Odisha, was the mastermind behind the racket and used his contacts with Dash, to cheat people applying for car loans. He was involved in similar cases earlier as well while working with other companies like HDFC and Citi Life.

"He (Subodh) would contact people whose loans had been rejected by the bank and would get them approved illegally using fake income tax return documents," said a police officer.

However, when the loan was sanctioned, the advance amount paid by the customer was kept by the gang.

"One of the victims paid Rs. 2.5 lakh as advance for a car costing Rs. 13.5 lakh but the amount was not deducted in the sanctioned loan," said the officer.

Meanwhile, Rakhrai was arrested as he first got a loan sanctioned from the bank and then encashed it through a fake bank account posing as a car dealer.