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Punjab Vigilance Bureau arrests two in 2017 multi-crore bank fraud case

By, Kapurthala
Feb 05, 2025 08:14 AM IST

The accused, in connivance with bank officials, private individuals and officers/employees of the state revenue department, is said to have embezzled crores of rupees through fraudulent means.

The Punjab Vigilance Bureau (VB) has arrested Satnam Singh and Sarabjit Singh Numbardar, both residents of Sarupwal village in Sultanpur Lodhi tehsil, for involvement in a multi-crore scam at the State Bank of Patiala (now State Bank of India), Sultanpur Lodhi branch in Kapurthala district.

The inquiry established that approximately <span class='webrupee'>₹</span>3.71 crore had been misappropriated through 14 loan files as of April 30, 2016.
The inquiry established that approximately 3.71 crore had been misappropriated through 14 loan files as of April 30, 2016.

The accused, in connivance with bank officials, private individuals, and officers/employees of the state revenue department, embezzled crores of rupees through fraudulent means.

Giving details, a VB spokesperson said that based on the investigation, a case registered on March 9, 2017, at the vigilance bureau range, Jalandhar under Sections 409, 420, 467, 468, 471, and 120-B of the Indian Penal Code (IPC), along with Sections 13(1) and 13(2) of the Prevention of Corruption Act.

The investigation revealed that the accused, in connivance with the branch manager and other bank employees, as well as revenue officials, fraudulently obtained loans and credit limits to siphon money.

The inquiry established that approximately 3.71 crore had been misappropriated through 14 loan files as of April 30, 2016.

Modus operandi

Explaining the modus operandi, the spokesperson added that the accused secured bank loans using fictitious identities and fraudulent land records. They obtained incomplete field reports and forged guarantor deeds in collaboration with private individuals and revenue officials.

“Despite the fact that the purported borrowers were not the actual owners of the land, which in reality belonged to the Punjab government, the land was falsely shown as privately owned. Revenue officials facilitated this fraud by issuing falsified fards, fard-girdawaris, and free-of-encumbrance certificates. Satnam Singh Sarupwala provided forged revenue documents and a mortgage certificate to secure an agricultural loan from Sulinder Singh, the then-manager of the State Bank of Patiala, Sultanpur Lodhi branch. Based on these fabricated documents, the bank manager, in collusion with other accused bank employees, including field officer Surinder Pal and panel lawyer Tara Chand, prepared false reports to approve a loan in Satnam Singh’s name for his personal benefit,” he said.

Consequently, the bank manager sanctioned a 16 lakh loan, despite revenue records proving that the jamabandi of Lohian village did not match official records. The Khewat-Khatoni and Khasra numbers mentioned in the loan documents were also absent from revenue records. Furthermore, no official entry regarding this loan was recorded in the Roznamcha (daily revenue journal).

Similarly, upon verifying the mortgage deed, it was discovered that the bank manager, in collusion with Satnam Singh and others, had fraudulently affixed a fake registration number of the joint sub-registrar, Lohian, on the deed. Sarabjit Singh Numbardar of Sarupwal village had provided false testimony regarding this forged document.

VB spokesperson said a case was registered against 33 individuals based on the vigilance inquiry and to date, 28 accused have been arrested, while three have been declared absconders by the court.

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