The city police have arrested three persons in connection with two cases of cheating the State Bank of India of a total of ₹2.5 crore by taking two loans by producing fake documents

The city police have arrested three persons in connection with two cases of cheating the State Bank of India of a total of ₹2.5 crore by taking two loans by producing fake documents at the Mallikatta branch in the city.

The police arrested Muneer Kadam, 53, of Ujjodi and P. Hussain, 52, of Nandigudde, in connection with the case registered by the SBI against Electro World Enterprises, its owner Abdul Hameed, his helper Muneer Kadam, and six others for fraudulently getting a loan of ₹1.2 crore.

In another case, the police arrested Mohammed Mustafa, 27, of Jeppu, in connection with the complaint filed by the bank against Mustafa, his firm M.H. Enterprises, and five others, on the charge of fraudulently getting a loan of ₹1.3 crore.

In the first complaint, SBI Chief Manager Sourabh Kumar Verma said on a recommendation by the bank's relationship manager Abhishek Nanda, the bank sanctioned ₹1.2 crore under MSME scheme to Abdul Hameed-owned Electro World Enterprises, on the basis of documents given by Muneer Kadam and five other accused persons.

After the loan became a non-performing asset following failure in repayment on August 13, 2024, the bank found that the firm had not used the loan for the purpose it was meant for. An amount of ₹1.08 crore was distributed among Kadam and five other accused persons.

An amount was also credited to Nanda's ICICI bank account on the day the loan was granted, Mr. Verma said.

Similarly, Mr. Verma filed another complaint accusing Mustafa and his firm M.H. Enterprises of getting ₹1.3 crore sanctioned from his firm through Nanda, on the basis of documents given by Kadam and three others. Here too, ₹ 1.21 crore was distributed among Kadam and the three other accused. Money was also credited to Nanda's ICICI account.

Nanda has been suspended, he stated.

Three held for cheating SBI of ₹2.5 crore through two loans by producing fake documents in Mangaluru