A major interstate loan fraud network worth over ₹100 crore has been dismantled by the Uttar Pradesh Special Task Force, which arrested eight men accused of creating shell companies, forging identities and using fake documents to secure large loans. Investigators say the group operated a sophisticated racket that exploited gaps in bank verification systems, often purchasing or transferring properties using fake profiles or those of deceased owners.
According to officials, the alleged mastermind Ramkumar, a former loan executive with experience in major private banks, partnered with builders and complicit bank employees to fabricate borrower profiles. He reportedly created multiple private firms that appointed &ldquo;fictional directors,&rdquo; opened bank accounts using forged Aadhaar cards and circulated funds through salaries, personal loans and inflated home loans. &ldquo;The network relied on forged identities, collusion and systematic layering of money,&rdquo; an STF officer said.
The probe further revealed that over 20 shell firms were created to move money disguised as legitimate financial activity. Two key members, Wasi and Alam, allegedly recruited individuals from Bihar and Gulf-returned workers, offering them money to use their documents for high-value loans. In one instance, the gang transferred a Delhi property belonging to a deceased woman and secured a loan of ₹4.8 crore against it. Earlier, another associate was caught obtaining a ₹1.25-crore loan using a forged sale deed.
The STF has so far frozen around 220 bank accounts linked to the racket and found evidence indicating the fraud spread across Noida, Lucknow, Varanasi, Haridwar, Chandigarh, Delhi and Gurugram. Many accused lived in upscale neighbourhoods, used pseudonyms and repeatedly wiped their phones to destroy communication trails. A case under relevant cheating, impersonation and forgery sections has been registered, and officials say more arrests may follow as the builder nexus and financial footprint are further examined.

UP STF Busts ₹100-Crore Loan Fraud Ring

Shell firms, forged IDs and bank collusion exposed in massive interstate loan scam

UP STF Busts ₹100-Crore Loan Fraud Ring

Shell firms, forged IDs and bank collusion exposed in massive interstate loan scam

December 6, 2025 | 15:16 IST