Farm loan fraud in HDFC bank at Rajam branch

The local branch of a reputable bank that has national presence has been rocked by an agriculture loans fraud, to the tune of Rs 1.05 crore. About 17 persons of G Sigadam mandal obtained loans, which ran up to Rs 1.05 crore from the HDFC Bank’s branch at Rajam. The issue came to light when the bank officials summoned the borrowers, who had defaulted to repay the loans. When the officials asked the borrowers to repay their loans they refused, even after receiving demand notices. The bank officials investigated the details of the borrowers and realised that they had been cheated as the crop loans the bank gave could well turn into NPAs.  

In course of the investigation, it was also learnt that the accused borrowers had created fake pattadar passbooks and obtained huge loans.

According to Rajam CI Venugopal, a complaint was lodged by the bank officials alleging that the loans were obtained by the farmers of Dalem and Rajuvalasa villages of G Sigadam mandal by producing fake pattadar passbooks. As many as 17 people had obtained loans to the tune of Rs 1,05,83,900 from the local HDFC Bank branch, he said. He also said since the complaint was lodged by the bank officials on Wednesday and thorough investigation would be conducted.

According to some sources, who are in the know of the things, obtaining loan, with the help of fake pattadar passbook, is not easy unless all the supportive documents are produced. There are, therefore, suspicions on the involvement of bank officials and also revenue officials in this fraud.

For record, almost two years ago, a person obtained a huge loan by mortgaging imitation gold ornaments with Karur Vysya Bank at Rajam. Similar frauds with regard to agriculture loans obtained by creating fake documents took place in Nandigam mandal previously.