56-year-old Sukhpal Singh, a manager with SBI, was arrested for his involvement in sanctioning of loans on forged doucments, Devesh Srivastava, Additional Commissioner of Police (Central), said.
"During his tenure as Branch Manager at Jama Masjid branch of SBI, Singh got sanctioned 42 personal loans out of which 27 were not repaid and four cases were found to be forged," he said.
Singh and the loanee, Mahesh Mehta (40) were arrested following investigations into a complaint by M S Kardam, Branch Manager of SBI's Jama Masjid branch, who alleged that Mehta had obtained a loan of Rs 2.5 lakh in 2008 allegedly using false and fabricated documents.
The fraud came to the notice of the bank officials only when they made efforts to recover the loan amount and it was learnt that no such person as named in the loan documents was residing at the given address, Srivastava said.
During investigations, Mehta's house in Bhajanpura was raided and he was arrested. His interrogation led to the arrest of Singh.
Mehta obtained the loan with the connivance of Singh and two other accomplices Prem Parkash Suneja, a retired AGM of the bank, and one Praveen Kumar.
He also got loans from Axis Bank, ICICI Bank, City Finance and HSBC Bank, however, he did not repay these loan amounts also and became defaulter.
"Mehta had allegedly come in contact with Suneja through Praveen Kumar. Suneja allegedly prepared forged documents. Mehta used to pay 30 per cent of the loan amount to Suneja, Singh and Praveen Kumar after the sanction of the loan amount," Srivastava said.
Efforts are on to arrest Suneja and Praveen Kumar.
