Former Accountant and Wife Arrested in Bengaluru for Defrauding 22 Banks of $1.2 Million

Former accountant, his wife, and 4 others arrested for cheating 22 banks of ₹10 crore using forged land documents as collateral. Highlights financial fraud and need for stricter loan verification processes.

Dil Bar Irshad
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Former Accountant and Wife Arrested in Bengaluru for Defrauding 22 Banks  of $1.2 Million

Former Accountant and Wife Arrested in Bengaluru for Defrauding 22 Banks of $1.2 Million

Bengaluru police have arrested a former accountant, Nagesh Bharadwaj, his wife Suma, and four others for allegedly cheating 22 banks of Rs 10 crore ($1.2 million) by using forged land documents as collateral to obtain loans. Bharadwaj, who was previously dismissed from the Accountant General's office for misappropriation of funds, used his experience to produce the fake documents.

The couple and their associates, including Suma's sister, brother-in-law, younger brother, and his friend, face nine fraud cases in different parts of Bengaluru. They used the forged documents of land plots to take out loans from various banks. The police have not yet recovered the money from the suspects.

Bharadwaj and Suma also ran a food product factory but incurred financial losses, leading Bharadwaj to start taking loans from banks using the forged certificates. In 2022, a cooperative bank filed a complaint against the couple, accusing them of going into hiding after taking a loan of Rs 1.3 crore to purchase machinery for their factory, which the bank later found to be based on fake documents.

Why this matters: This case highlights the ongoing issue of financial fraud in India and the need for stricter verification processes by banks when granting loans. It also emphasizes the importance of holding accountable those who misuse their professional expertise to engage in criminal activities.

The five suspects, all residents of Begur, Bengaluru, have been arrested by the police. The investigation is ongoing as authorities work to uncover the full extent of the fraud and recover the stolen funds from the banks involved. "We have arrested the main suspects and are investigating the case further to identify any other individuals who may have assisted them in the fraud," said a police official involved in the case.

Key Takeaways

  • Former accountant Nagesh Bharadwaj and wife Suma arrested for $1.2M bank fraud
  • Used forged land documents to obtain loans from 22 banks in Bengaluru
  • Couple and associates face 9 fraud cases, money not yet recovered
  • Bharadwaj misused professional expertise to commit crimes after business losses
  • Case highlights need for stricter loan verification processes by Indian banks