Vigilance Bureau Nabs Two in Multi-Crore State Bank Scam in Punjab
Chandigarh, February 4, 2025 – In a major breakthrough in an ongoing investigation, the Punjab Vigilance Bureau (VB) has arrested two individuals, Satnam Singh and Sarabjit Singh Numberdar, for their involvement in a multi-crore embezzlement scam at the State Bank of Patiala, Sultanpur Lodhi branch. The accused conspired with bank officials, private individuals, and officers from the state Revenue Department to embezzle a significant sum of money through fraudulent loans and credit schemes.
This operation, which came after a thorough investigation by the Vigilance Bureau, sheds light on the extent of corruption and deceit that led to the misappropriation of crores of rupees meant for public welfare. The accused are implicated in a scam that allegedly involved the creation of fake identities, forged documents, and fraudulent land records to secure loans from the bank.
The Fraudulent Loan Scheme: A Deceptive Web
According to a spokesperson from the Punjab Vigilance Bureau, the investigation into the scam began following a vigilance inquiry registered seven years ago. In March 2017, an FIR (No. 5) was filed under multiple sections of the Indian Penal Code (IPC) including 409 (criminal breach of trust), 420 (cheating), 467 (forgery), 468 (forgery for the purpose of cheating), 471 (using a forged document as genuine), and 120-B (criminal conspiracy), as well as under the Prevention of Corruption Act. The case involved numerous conspirators, including the bank’s branch manager, several employees, and revenue officials who facilitated the fraudulent activities.
The investigation revealed that the accused had colluded to secure loans by submitting falsified documents, including forged land records, fake guarantor deeds, and incomplete field reports. These bogus documents allowed the accused to fraudulently obtain loans despite the borrowers not being the legitimate owners of the land, which was supposed to be owned by the Punjab Government.
One key detail that emerged from the investigation was the method by which the accused secured loans using fraudulent land documents. The suspects were able to fabricate land ownership records, and with the help of revenue officials, they obtained falsified documents such as fards (land records), free-of-encumbrance certificates, and mortgage certificates. These documents were used to apply for loans from the bank.
How the Scam Worked: Forged Documents and False Testimonies
Satnam Singh, one of the main accused, reportedly provided forged documents such as Fard Jamabandi, Fard Haqiyat, and Fard Girdawari to secure an agricultural loan. These documents, presented to Sulinder Singh, the then-manager of the State Bank of Patiala’s Sultanpur Lodhi branch, were fabricated in such a way that the land appeared to be privately owned. The bank manager, in collusion with the accused, sanctioned a loan of Rs 16 lakh to Satnam Singh.
The bank officials involved, including Field Officer Surinder Pal and Panel Lawyer Tara Chand, are alleged to have been part of the scheme to approve the loan, despite clear discrepancies in the land records. The loan was approved based on the fabricated records, which did not match the official records in the Roznamcha (the daily revenue journal).
The forgery also extended to the mortgage deed. The accused forged the registration number of the Joint Sub-Registrar, Lohian, to create a fake registration on the deed, further covering up the fraudulent transaction.
The Investigation and Arrests
The Vigilance Bureau has now arrested 28 individuals connected to this large-scale scam, with two more, Satnam Singh and Sarabjit Singh, being arrested recently. These arrests come after years of investigation and the identification of 33 individuals involved in this fraudulent network. Three accused have been declared absconders by the court, and the Vigilance Bureau is actively working to apprehend them.
The two arrested individuals, Satnam Singh and Sarabjit Singh, are expected to be presented in court tomorrow, as further investigations continue to uncover the full extent of the scam. The Vigilance Bureau’s prompt action aims to bring those responsible to justice and recover the misappropriated funds.
A Growing Concern: The Role of Revenue Officials
One of the key issues highlighted in this case is the involvement of state revenue officials, who played a crucial role in facilitating the fraudulent loans. The issuance of false documents such as fards and mortgage certificates was critical to the success of the scam. This raises concerns about the integrity and accountability of revenue officials and the need for stronger oversight in government departments to prevent such fraudulent activities in the future.
Conclusion: Vigilance Bureau’s Ongoing Efforts to Combat Financial Crime
The Punjab Vigilance Bureau’s recent arrests in the State Bank scam demonstrate the agency’s continued commitment to tackling financial crimes and ensuring that public resources are protected from exploitation. With the investigation ongoing, further arrests and revelations are expected, shedding light on the full scale of corruption within the banking and revenue departments.
As the Bureau closes in on the remaining accused, the case serves as a reminder of the importance of maintaining transparency and accountability in both the public and private sectors. The ongoing efforts of the Vigilance Bureau will likely result in stronger measures to combat corruption and fraud in Punjab’s financial institutions.