With the arrest of two persons police on Tuesday claimed to have busted a racket, which used to obtain loans from banks on fake documents in Anantnag district.
Last week, Mohammad Shaban Khanday, a resident of Anantnag, approached police with a complaint that some persons have fraudulently availed a loan from Central Cooperative Bank branch of Mandhi Kadal in his name and without his knowledge, a police spokesman said.
After investigation, two vehicle brokers were arrested.
An FIR was also registered against a former general manager and branch manager of the bank, the spokesman said.
During the probe, police recovered fake letters of authority produced by the borrowers for the issuance of bank loan against which some of the borrowers have purchased the vehicles.
Brokers Bilal Ahmad Khan of Sarnal and Raja Mudasir of SK Colony have been arrested, the spokesman said.
The then general manager Atta Mohammad Nath is evading arrest while a case has also been registered against the then branch manager Peer Nazir Ahmad, police said.