Bhubaneswar, June 28: The economic offences wing of Crime Branch has arrested five persons for their alleged involvement in a bank loan fraud worth Rs 1.17 crore.

The accused, who were picked up yesterday, have been identified as Jogesh Chandra Nahak, former branch manager of State Bank of India, Sakhigopal branch, Umesh Chandra Kar, former field officer of the same branch who is at present a deputy manager of the bank at the regional business office in Baripada, Swetambar Jena and Kabiraj Behera, both senior technicians in the East Coast Railway, and Bhagaban Behera, the shunting master of East Coast railways. All of them were sent to jail following rejection of their bail pleas by a local court.

Deputy inspector general of economic offences wing Rajesh Kumar said that regional manager of SBI, Bhubaneswar, had lodged a complaint with the Crime Branch about a loan fraud last year. Between 2003 and 2006, as many as 51 fake personal loans worth Rs 1.17 crores were sanctioned by SBI Sakhigopal branch to employees of the East Coast Railway. Crime Branch registered a case under sections 419, 420, 467, 468, 471 and 120 of the IPC.

“A large number of the beneficiaries were not employees of the railway and they had produced forged documents such as fake salary certificates. The beneficiaries, who were railway employees, had also procured loans by submitting forged documents. Later, the loan accounts of the beneficiaries had become irregular due to non-payment of instalments,” said Kumar.

During investigation, it was revealed that the beneficiaries had conspired with the bank staff who did not even bother to verify the documents and granted the loan.