Bank official arrested for embezzling Rs 3.25 crore

Bhubaneswar: The economic offences wing (EOW) of the state crime branch on Wednesday arrested a bank official on charges of embezzling Rs 3.25 crore through fraudulent loan disbursals.The accused, Shiba Prasad Das (41), allegedly committed the fraud while heading two branches of a public sector bank in Cuttack district between 2021 and 2025. The bank lodged a complaint with the EOW on June 19 this year, leading to his arrest.EOW investigators said Das, as branch head of Old Secretariat (from July 21, 2021 to Feb 19, 2024) and Salepur (from Feb 20, 2024 to June 3, 2025), sanctioned and disbursed 22 car loans and two business loans worth Rs 3.25 crore by manipulating records, fabricating documents and abusing his official position.The loans were issued in the names of fictitious borrowers, with the amounts diverted to his personal accounts. The authorities are baffled at how the banker, with eight years of service, failed to anticipate detection while diverting money to his own accounts.“Perhaps he planned to invest the siphoned money in bulk, earn hefty profits and repay the EMIs himself through fake loan accounts. When the plan collapsed, he defaulted and was exposed,” an EOW official said.

EOW officials found that Das fabricated vehicle purchase quotations, projected already hypothecated vehicles as fresh purchases and submitted falsified registration certificates, insurance papers and coloured photocopies of motor vehicle records.“CIBIL (Credit Information Bureau India Limited) reports retrieved through the loan processing system were materially different from those in the physical loan files, indicating tampering,” the EOW official said.Savings accounts of certain borrowers were allegedly opened without proper forms or KYC compliance. Loan repayment transactions were reportedly funded by Das’s brother, creating an artificial repayment history to conceal irregularities.According to EOW, the acts prima facie disclose criminal breach of trust, cheating, forgery, use of forged documents, falsification of accounts, criminal conspiracy, impersonation and misappropriation of bank funds. EOW officials said they are chasing the money trail and will seek Das’s remand to trace the diverted funds.