Bhubaneswar: The Economic Offences Wing (EOW) of Odisha Police has arrested a person on charges of defrauding a private sector bank of Rs 1.42 crore.

Accused Mihir Kumar Paikaray was produced in a court in Cuttack, said the EOW on Thursday.

According to the police, Paikaray had fraudulently availed Rs 1.42 crore as loan from ICICI Bank by submitting fabricated land documents. He later misappropriated the loan amount.

“Paikaray had applied for a loan of Rs 1.42 crore from ICICI Bank main branch in Bhubaneswar by mortgaging fake/forged land documents. Based on the documents submitted by Paikaray, the bank sanctioned and disbursed the loan in his favour. However, he subsequently defaulted on the monthly EMIs, resulting in the loan account being classified as a Non-Performing Asset (NPA). The outstanding loan amount now stands at Rs 1.22 crore,” said the EOW.

Prior to availing loan from ICICI Bank, the accused had already obtained a loan of Rs 30 lakh from Bank of Baroda by mortgaging the same property with original sale deed. Due to his failure to repay the loan, Bank of Baroda auctioned the mortgaged property under SARFAESI Act, added the EOW.

During investigation, the EOW officials came to know that the sale deed submitted by the accused at the time of availing the loan from ICICI Bank was a forged one. Verification revealed that the stamp paper numbers available on the mortgaged sale deed as well as the signatures/thumb impressions of the accused did not match with the certified copy.

“The accused had also applied for a loan of Rs 1.50 crore from Suryodaya Small Finance Bank. But, the bank officials were able to detect the fraudulent attempt. Subsequently, the loan application was rejected,” revealed the EOW.

The EOW had registered a case against Paikaray on the basis of complaint lodged by a senior official of the ICICI Bank.