Bank Loan Fraud

Loan recovery gets an AI push as major banks deploy virtual agents

The AI avatars, often designed to appear in sharp business attire, adopt a firm tone and use legal language to nudge customers into making repayments during the call

Bank of Baroda classifies RCom, Anil Ambani loan accounts as 'fraud'

The move follows similar actions by the State Bank of India and Bank of India, which flagged RCom loans citing diversion of funds in 2016

Credit report: Check quarterly to spot repayment lapses, errors, and fraud

In case of inaccuracies and fraud, report both to the lender and credit bureaus

Lending app offering quick loan could be a scam: How to stay safe

Such offers are usually made by unregulated entities and could steal your data, harass you

CBI court stays loan fraud case proceedings against Choksi till August 8

A special CBI court here on Friday stayed proceedings against diamantaire Mehul Choksi till August 8 in the Rs 55 crore Canara Bank-led consortium loan fraud case. A magistrate court, in April, took cognizance of a chargesheet filed by Central Bureau of Investigation in the case and had issued summons to the accused, including Choksi and two former employees of Gitanjali group Vipul Chitalia and Aniyath Nair. However, their lawyers Vijay Agarwal, Rahul Agarwal and Jasmin Purani on Friday filed a revision application against the magistrate's order before the special CBI court claiming it was passed in "a mechanical manner without application of mind". The order summoning the accused has been passed with lightning speed on the same day of filing of chargesheet, without even perusing it, they claimed and sought interim relief until their plea is decided. Special Judge J P Darekar, presiding over the matter, found that the magistrate court's order does not reflect any opinion formed .

New India Coop Bank: EOW searches ex-chairman's home in Rs 122 cr fraud

The Mumbai police's economic offences wing (EOW) has searched the residence of New India Cooperative Bank's former chairman Hiren Bhanu in connection with the embezzlement of Rs 122 crore at the lender, officials said on Wednesday. During the search, EOW recovered several documents, which police are examining, an official said. The house search was conducted in the Malabar Hill area of south Mumbai, where Hiren Bhanu and his wife Gauri Bhanu stayed in a rented flat, an official said. Gauri previously held the position of vice chairman at the bank. The couple also own a flat at Nepean Sea Road which they have rented out, an official said. Both are wanted accused in the Rs 122-crore embezzlement case. The EOW team is identifying the couple's properties and also ascertaining whether they were acquired with the proceeds of the crime, he said. Meanwhile, the agency will conduct a lie detector test on Hitesh Mehta, former general manager and head of the accounts of the bank, on March 11

PNB reports Rs 270.57 cr loan fraud by Gupta Power Infrastructure

State-owned Punjab National Bank on Tuesday reported a fraud of Rs 270.57 crore by Odisha-based Gupta Power Infrastructure Ltd to the Reserve Bank. Borrowal fraud of Rs 270.57 crore has been reported to the Reserve Bank of India (RBI) in non-performing asset (NPA) account of Gupta Power Infrastructure Ltd, PNB said in a regulatory filing. The loan was given by Station Square branch of the bank in Bhubaneswar, it said. The bank has already made provisions amounting to Rs 270.57 crore, according to prescribed prudential norms. For the December quarter, PNB posted more than two-fold jump in net profit to Rs 4,508 crore as against Rs 2,223 crore in the same quarter a year ago. The company's total income increased to Rs 34,752 crore from Rs 29,962 crore in the same period a year ago, PNB said in a regulatory filing. Interest income also rose to Rs 31,340 crore from Rs 27,288 crore in the same quarter a year ago. On the asset quality front, the bank's gross non-performing assets ratio

Bank loan 'fraud' case: ED raids ex-directors, promoters of Kwality Ltd

The Enforcement Directorate on Wednesday conducted searches at multiple locations in Delhi and adjoining areas as part of an alleged bank loan fraud linked money laundering probe against former promoters of liquidated dairy major Kwality Ltd, official sources said. About a dozen places are being raided under the provisions of the Prevention of Money Laundering Act (PMLA), the sources said. The money laundering case stems from a 2020 FIR of the CBI against Kwality Ltd and its directors filed in September, 2020 for allegedly cheating a consortium of 10 banks, led by the Bank of India, for an amount over Rs 1,400 crore through alleged bloating of financial statements and diversion of loan funds. The premises of the former promoters of the company, directors and other key persons are being searched, the sources said. Kwality Ltd. started as an ice-cream manufacturing company and diversified into milk-based products. Its former directors include Sanjay Dhingra, Siddhant Gupta, Arun ...

Returned assets of over Rs 185 cr to banks in loan fraud case, says ED

The Enforcement Directorate Wednesday said it has "returned" assets worth more than Rs 185 crore to a State Bank of India (SBI)-led consortium of banks which were allegedly cheated through a loan fraud by a Chandigarh-based pharma company. The case pertains to Surya Pharmaceutical Ltd., undergoing liquidation currently, its directors and promoters named Rajiv Goyal and Alka Goyal who caused "wrongful loss" worth Rs 828.50 crore to the banks, it said. The ED filed a criminal case against the accused company and its promoters taking cognisance of a CBI FIR. The agency said in a statement that loan was obtained by the company using "fabricated" documents such as invoices, transport details, lorry receipts etc. for issuance of Inland Letter of Credits (ILCs) and this money was subsequently "layered and siphoned off" by Surya Pharmaceutical Ltd. using a web of bank accounts of group companies and shell entities. This caused a loss of Rs 828.50 crore to the lending banks headed by SBI, i

Telecom company MTNL defaults on Rs 422 cr loan payments from various banks

State-owned telecom company MTNL has defaulted on bank loan payments worth Rs 422.05 crore, a regulatory filing said on Monday. The total default amount comprises Rs 328.75 crore default on instalment of principal and Rs 93.3 crore towards interest on debt for June and July. According to the details shared by MTNL, it has defaulted on the payment of Rs 155.76 crore on debt raised from Union Bank of India, Rs 140.37 crore from State Bank of India, Rs 40.33 crore from Bank of India, Rs 40.01 crore from Punjab & Sind Bank, Rs 41.54 crore from Punjab National Bank and Rs 4.04 crore from UCO Bank. The telecom firm earlier raised Rs 5,573.52 crore in debt from these banks. The loss-making telecom firm has total borrowings of Rs 7,873.52 crore from banks and financial institutions, and the total debt of the company stands at Rs 31,944.51 crore. MTNL has sought Rs 1,151.65 crore from the government for payment of interest arising out of sovereign guarantee bonds in the current ...

2,000 ghost customers: How a Rs 150 cr loan fraud unfolded in Mizoram

Mizoram DGP Anil Shukla said the scam, involving five local car dealers, operated over four years

Bank loan fraud: ED raids in case against company promoted by former UP MLA

The Enforcement Directorate on Friday raided locations in Uttar Pradesh, Gujarat and Haryana as part of an alleged Rs 750 crore bank loan fraud linked money laundering probe against a road construction and toll plazas operating company promoted by a former UP MLA, official sources said. The search action is being taken against Gangotri Enterprises and its main promoters Vinay Shankar Tiwari, Rita Tiwari and Ajeet Pandey. These accused are alleged to have indulged into an alleged bank loan fraud of about Rs 750 crore between 2012 and 2016 against a consortium of banks led by the Bank of India, the sources said. Vinay Shankar Tiwari is the son of late former minister and strongman from Gorakhpur Hari Shankar Tiwari. He represented his father's assembly constituency of Chillupar in Gorakhpur after he was elected on a BSP ticket. He later joined the Samajwadi Party. About ten premises in Lucknow, Gorakhpur and Noida in UP, Ahmedabad (Gujarat) and Gurugram (Haryana) are being searched by

As online frauds rise, all you need to know about Pig Butchering Scam

The term "pig butchering" refers to the process of fattening the victim emotionally before ultimately deceiving them financially

SC cancels statutory bail of DHFL's former promoters in bank loan scam case

The court set aside the orders of the trial court and the Delhi High Court granting the brothers default or statutory bail

Bank frauds increase, private sector lenders make more write-offs

Private banks in FY23 accounted for 74% of amounts written off due to fraud

ED attaches land worth over Rs 193 cr in Srinagar in JKSCB loan fraud case

A land in Srinagar worth more than Rs 193 crore has been attached by the Enforcement Directorate under the anti-money laundering law as part of an investigation into a loan fraud involving the Jammu and Kashmir State Cooperative Bank (JKSCB). A provisional order has been issued under the Prevention of Money Laundering Act (PMLA) to freeze the asset, which measures 257.19 kanal and is located in the Shivpora area of Srinagar, the federal agency said in a statement. The value of the property is Rs 193.46 crore, it said. The agency, earlier this month, had arrested former JKSCB chairman Mohammad Shafi Dar and Mohammad Hilal A Mir, the chairman of the River Jhelum Cooperative House Building Society, a "fictitious firm", as part of the investigation. They are in judicial custody till December 20. The PMLA case pertains to an alleged fraud in sanctioning of a loan to the tune of Rs 250 crore (disbursement amount Rs 223 crore) in 2019 to the River Jehlum Co-operative House Building Societ

SC seeks reply of Chanda Kochhar, husband on CBI's plea in loan fraud case

The Supreme Court on Monday sought response of former ICICI Bank CEO-cum-MD Chanda Kochhar and her businessman husband Deepak Kochhar on a plea of the CBI challenging the interim bail granted to them by the Bombay High Court in a loan fraud case. A bench of Justices Aniruddha Bose and Bela M Trivedi issued notice on the plea of the CBI and sought the response of the couple in three weeks. Additional Solicitor General SV Raju, appearing for the CBI, said the high court proceeded on a wrong presumption that offence is punishable with maximum of seven years imprisonment without considering section 409 of IPC (criminal breach of trust by public servant) which entails sentence from 10 years to life imprisonment. The bench asked Raju how section 409 of the IPC come into play when it was a private bank. Raju replied that the bank may be private but it involves public money. The bench said it is issuing notice and seeking their reply in three weeks. On January 9, the high court pulled up

Loan fraud case: Why didn't CBI object to bail to Kochhars, asks SC

Justice Trivedi asked Raju about the next date of hearing in the high court. The lawyer told the judge no fresh date has been announced yet

CBI books bank officers, GTIL in Rs 4,000 cr loan fraud case: Officials

The CBI has conducted searches at the office of GTL Infrastructure Ltd (GTIL) in Mumbai after registering an FIR against it and unidentified officials of banks in a loan-fraud case of more than Rs 4,000 crore, officials said on Tuesday. The officials of 13 banks are under the agency's scanner for allegedly assigning Rs 3,224 crore dues of the company to an asset reconstruction firm for Rs 1,867 crore without attempting to secure their loans from collateral securities, they said. They were part of the negotiations related to the outstanding loans of GTIL, the officials said. The banks are Union Bank of India, Central Bank of India, Indian Overseas Bank, Bank of Baroda, ICICI Bank, Punjab National Bank, Oriental Bank of Commerce, Andhra Bank, Bank of India, axis Bank, State Bank of India, United Bank of India and Dena Bank, they said. The Central Bureau of Investigation (CBI) registered the case after a preliminary inquiry in which it surfaced that GTIL, promoted by Manoj Tirodkar, w

Bombay HC pulls PNB for inaction on diamantaire Nirav Modi's loan frauds

The Bombay High Court has pulled up the Punjab National Bank (PNB) for not taking steps to recover the huge amounts of money availed as loans by the fugitive diamantaire Nirav Modi.