Dahod has been shaken by a major loan scam involving the State Bank of India (SBI), one of the country’s most respected banks. This fraud was uncovered in two different branches of the bank. Agents colluded with a former bank manager to approve loans worth ₹5.05 crore using fake salary slips and forged documents. An audit report revealed that the bank’s rules were completely ignored in this scheme.
The trouble began when the bank manager filed a complaint. Police have registered a case against around 30 individuals, including the bank manager and various agents. So far, seven people have been arrested, including the managers of both branches, two agents, and three loan recipients. This incident has caused a stir not only in Dahod city but throughout the district.
Dahod has gained a negative reputation due to repeated scams, tarnishing its image at both state and national levels. Between 2021 and 2023, Gurmit Singh, the main branch manager, teamed up with agents Sanjay Damor from Dahod and Faim Sheikh from Surat. They targeted employees working in class IV railway jobs, presenting them with inflated salary slips to show they earned more than they actually did. This led to the approval of loans totalling ₹4.77 crore for 19 people.
In another case, the manager of the SBI branch at GLK Tower, Manish Wamanrao Gawale, approved loans worth ₹82.72 lakh for about 10 people. He and his agents misrepresented these individuals as teachers or employees of the Gujarat State Road Transport Corporation (GSRTC), even though they did not meet the criteria. The arrested agents helped customers create fake documents to secure loans and then took a cut of the loan amounts as commission.
It has come to light that a share of this commission was funnelled to the bank managers. When repayments were not made on time, some accounts became non-performing assets (NPAs), leading to the fraud being revealed in an audit report in June 2024. This case raises concerns about the integrity of banking practices in Dahod.
The authorities are now looking into how such a large-scale fraud could happen in a respected bank. Investigations are ongoing, and more arrests may follow as police dig deeper into the operations of the agents and their connections within the bank. This incident serves as a reminder of the importance of stringent checks and balances in financial institutions to prevent similar frauds in the future.
The SBI bank has stated that it takes such matters very seriously and will cooperate fully with the police investigation. They have also assured customers that their money is safe and that they are taking steps to improve their internal controls. As the investigation unfolds, the people of Dahod wait anxiously to see what further actions will be taken against those involved in this scandal.