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Glare on banks over customer check

delhi Updated: Mar 29, 2012 01:46 IST
Faizan Haider
Faizan Haider
Hindustan Times
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Delhi police are planning action against banks that do not properly verify the credentials of customers before opening accounts.

In several recent cases of cheating busted by the Delhi police, the accused had opened bank accounts using forged documents.

On Tuesday, the crime branch attached 36 bank accounts used by a gang to cheat students seeking loans.

"Surprisingly, even government banks are not carrying out proper verification. The members of this gang had submitted forged documents to open accounts," a senior police officer, who requested anonymity, said.

"Banks are required to conduct proper verification to stop such illegal activities. A letter has been written to the banks concerned," the officer added.

The police arrested 12 of the gang members, including eight women. They would cheat students by promising them education loans. The police claimed the gang had cheated over 300 students to the tune of Rs 45 lakh.

The police are now planning to book bank officials for criminal conspiracy.

"We are exploring the possibility of taking legal action against banks," the officer revealed.

"Investigations have revealed that one of those arrested — 25-year-old Sandeep Bajaj, a Delhi University graduate — had opened bank accounts with various banks. He had prepared fake identity cards (PAN and voter’s cards) using fictitious names. As per procedure, banks should verify the antecedents of account holders."

Using their bank account documents, the gang would buy SIM cards.

Sources said that on a few occasions, even bank employees were found helping such gangs.

"The gang members generally bribe the person who conducts the verification. Banks needs to tighten the noose on these outsourced employees who conduct the verification," he added.