Berhampur: Police have arrested the State Bank of India's former manager of Karchuli branch Nirmad Naik for two separate loan frauds amounting to Rs 19.50 lakh.

"Agriculture loans worth Rs 16 lakh were issued in the name of 12 ghost loanees during 2014-17, while another fraud was reported in the bank in 2015 amounting to Rs 3.50 lakh as agricultural loans against the name of seven Udaypur villagers, who are unaware of the development," said Bhanjangar sub-divisional police officer Utkal Keshari Das. The frauds were reported during the tenure of Naik as the branch manager.

A case had been registered at Buguda police station last year against Naik under sections 468, 471, 409 and 420 of the Indian Penal Code for grants of loan against ghost loanees.

The second case was registered against the bank official at the same police station on March 29 under sections 409 and 420 of the IPC, Das said. "Nayak was transferred to Sorada from Karchuli last year after the case had been registered against him. We arrested him on Thursday and produced him in court, which sent him to jail custody."

"Prima facie evidence shows Naik is involved in the loan fraud by receiving the money through fake signatures," said Das. "We have sought the bank's audit report, while statements of the so-called loanees in the second fraud case are being recorded," he said.

Papina Naik, Babita Naik, Satya Naik and many others from Udayapur alleged that the manager had told them to avail themselves of agricultural loans during 2015. "He asked us to bring the patta of our houses and other related documents to the bank to get the loans. When we gave the documents, he asked us to come after 15 days and again after 10 days. At last he gave back the documents and told us that the last date expired and we would try for the loan next year. We have not taken single paise as loan from the bank. But now, the bank is asking us to repay the loan amounting Rs 60,000 to Rs 80,000," a villager said.

Naik, while in police custody on Thursday, said: "I cannot remember everything. I can comment only when I go through the past official record."

In the case of the loan issued in the name of ghost loanees, the bank record shows Rs 73,000 agriculture loan had been issued in 2014 in the name of one Barik Naik of Udaypur, who died 18 years ago. His son Satya said: "I do not know who has taken agriculture loan in the name of my father, who died when I was a child."

Local sarpanch Simanchal Pradhan said: "List of loanees available at the panchayat office does not match with that of the bank."