Two arrested for Rs 10-cr bank fraud

Two persons were today arrested for allegedly defrauding a bank here of Rs 10 crore on account of loans to non-existent companies.

Manager of Canara Bank, Lal Chowk branch, lodged a police complaint against seven business units that had taken loans, totalling Rs 10 crore, but had defaulted on it, a police spokesman said.

During investigation, it was revealed that some people, in connivance with the then Manager of the branch, had doctored documents to get loans sanctioned for non-existent business units, he said.

The spokesman said two persons -- Rayees Ahmad Khan and Irfan Ahmad Darzi -- were arrested on the charges of fraud.
 

"The investigation in the case is still going on and more arrests are expected in coming days," he added.