Manager of State Bank of India's Talasingi branch Nirdosha Behera yesterday lodged FIRs against 36 people with Digapahandi police for taking loans producing fake land documents.
Police said it is suspected to be a major bank fraud running into Rs 1.22 crore.
Police arrested Kailash Behera of Kaithada village, on charges of taking a loan Rs 4.97 lakh from the bank in 2006 to buy tractor by producing fake land documents.
Inquiry is on in other cases and action would be taken against the guilty, he added.
The complainant said the fraud came to fore after the bank crosschecked the papers with respective sub-registrar and tahasil offices. The offenders are mostly from Digapahandi, Sanakhemundi, Chikiti and Berhampur, he said.
The loans were taken under the government's subsidy scheme for procuring tractors. "We are verifying documents of other borrowers," he added.