₹3.2 Crore Bank Loan Fraud Unearthed in Mumbai Using Forged Documents

In a startling bank loan fraud and financial fraud case from Mumbai, a family has been accused of duping a major private bank to the tune of ₹3.2 crore by allegedly submitting forged property documents and fake approvals. The incident, which took place between October 2023 and April 2024, is now under police investigation following an FIR lodged at the Andheri Police Station.

According to the complaint filed by a senior bank official, the bank sanctioned a ₹3 crore loan to a private firm in October 2023. The loan was backed by four flats located in JB Nagar, Andheri East, which were claimed to be owned by one of the accused family members.

The deception came to light when the loan repayments suddenly stopped in April 2024. When approached, the borrowers outright denied ever having taken the loan, claiming the submitted signatures and documents were not theirs. This prompted the bank to initiate an internal re-verification of the entire documentation process.

Upon closer scrutiny, the bank discovered that the NOCs (No Objection Certificates) allegedly issued by the housing society were forged. Additionally, mutation certificates and other property ownership records were fabricated. Signatures on the loan application documents were found to be inconsistent with the ones already on file with the bank.

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The investigation further revealed that out of the ₹3 crore disbursed, nearly ₹2.92 crore had already been redirected to repay a separate, unrelated corporate loan. The funds meant for business use were diverted within months of disbursal, exposing a possible premeditated fraud.

The FIR names three members of the same family and includes sections of the Indian Penal Code for cheating (420), forgery (465 and 468), use of forged documents (471), and criminal conspiracy (34).

This case underscores how even with strict financial protocols, large-scale fraud can still occur through systematic manipulation of documentation and identity. The accused allegedly used false paperwork, including fake NOCs and title changes, to secure a large mortgage and misused the funds to close debts elsewhere.

The incident also illuminates the role of intermediaries and agents, as initial loan facilitation was reportedly managed through a third-party marketing agency. Despite following standard loan approval procedures, the bank was misled into sanctioning funds based on forged credentials.

With losses crossing ₹3.2 crore, the bank is now seeking strong legal action and policy tightening to prevent such incidents in the future. Investigations are ongoing, and authorities are examining whether more individuals or entities were involved in aiding or benefiting from the fraud.

As India’s financial ecosystem rapidly digitises and expands, this case is a sobering reminder that paper trails can be manipulated, and systemic oversight needs to evolve faster than the fraudsters. This incident isn’t just a breach of trust—it’s a wake-up call for banks, regulators, and borrowers alike.