Odisha EOW arrests ex-UCO Bank official in ₹3.25 crore loan fraud
Synopsis
A former UCO Bank branch head in Cuttack allegedly ran a ₹3.25 crore loan fraud spanning four years — fabricating vehicle quotations, forging KYC records, and even funding repayments himself to mask the scheme. The Odisha EOW's arrest of Shiba Prasad Das exposes a systemic vulnerability in branch-level loan oversight at public sector banks.
Key Takeaways
The Odisha EOW arrested former UCO Bank official Shiba Prasad Das on 1 July 2025 from Cuttack .
Das allegedly sanctioned 24 fraudulent loans — 22 car loans and 2 business loans — totalling ₹3,25,43,000 .
The fraud allegedly occurred across two branches: Old Secretariat Branch (2021–2024) and Salepur Branch (2024–2025).
Das reportedly fabricated vehicle quotations, forged CIBIL records, RCs, KYC documents, and insurance papers.
The entire loan amount was allegedly credited to Das's personal bank accounts ; he reportedly funded repayments himself to conceal the fraud.
EOW seized 24 loan documents , fake KYC papers, forged salary slips, and fabricated vehicle quotations.
The Odisha Police's Economic Offences Wing (EOW) on Wednesday, 1 July arrested a former UCO Bank branch head in connection with an alleged loan fraud totalling ₹3,25,43,000, officials confirmed. The accused, Shiba Prasad Das, was apprehended from the Trisulia area of Cuttack district in a case registered on 19 June, following a complaint by Varsha, Deputy General Manager and Zonal Head of UCO Bank's Cuttack branch.
The Alleged Fraud
According to the complaint, Das allegedly sanctioned and disbursed 22 car loans and two business loans worth a combined ₹3,25,43,000 by deliberately manipulating official records and fabricating documents, causing wrongful loss to the bank. The alleged misconduct reportedly occurred while Das served as Branch Head of UCO Bank's Old Secretariat Branch in Cuttack between 2021 and 2024, and subsequently at the bank's Salepur Branch from 2024 to 2025.
Modus Operandi
Investigators found that Das had allegedly fabricated vehicle purchase quotations to facilitate the sanction and disbursement of car loans. Several of these loans were reportedly processed for vehicles that had already been purchased, which were falsely projected as new acquisitions.
'Further investigation established that the accused tampered with copies of CIBIL records and prepared forged Registration Certificates (RCs), KYC documents, insurance papers, and other vehicle-related records to facilitate the processing and disbursement of the loans,' the EOW stated.
Notably, the entire loan amount of ₹3,25,43,000 was allegedly credited directly to Das's personal bank accounts rather than to legitimate borrowers.
Fake Accounts and Concealed Repayments
The EOW also found that Das had allegedly opened savings bank accounts in the names of certain borrowers without obtaining mandatory KYC documents. Loan repayments credited to these accounts were reportedly funded by Das himself, creating a false impression that borrowers were regularly servicing their accounts and concealing the actual source of repayments.
What Was Seized
Out of the 24 fraudulent loans, investigators found that Das had allegedly sanctioned 16 loans amounting to ₹1,85,95,000 during his tenure at the Salepur Branch and eight loans amounting to ₹1,39,48,000 at the Old Secretariat Branch. Investigators seized a range of incriminating material, including 24 loan documents, fake KYC papers, forged salary slips, and fabricated vehicle quotations.
The case marks one of the more elaborate internal banking frauds uncovered in Odisha in recent years, with the EOW indicating that further investigation is ongoing.
Point of View
Across two branches, while personally funding loan repayments to mask defaults, points to a systemic failure in oversight rather than a one-off lapse. The RBI has repeatedly flagged branch-level KYC compliance gaps; this case illustrates exactly what those gaps enable. Until banks implement real-time cross-verification of loan disbursements against borrower accounts, internal fraud of this nature will remain difficult to detect until the damage is done.
NationPress
1 Jul 2026
Frequently Asked Questions
Who is Shiba Prasad Das and why was he arrested?
Shiba Prasad Das is a former branch head of UCO Bank in Cuttack, Odisha. He was arrested by the Odisha Economic Offences Wing (EOW) on 1 July 2025 for allegedly sanctioning 24 fraudulent loans worth ₹3,25,43,000 using forged documents and fabricated records.
What was the modus operandi used in the UCO Bank loan fraud?
Das allegedly fabricated vehicle purchase quotations, tampered with CIBIL records, and forged Registration Certificates, KYC documents, and insurance papers to process 22 car loans and 2 business loans. He also reportedly opened bank accounts in borrowers' names and funded their repayments himself to hide the fraud.
How much money was involved in the Odisha UCO Bank scam?
The total fraudulent loan amount was ₹3,25,43,000. Of this, ₹1,85,95,000 was allegedly disbursed during Das's tenure at the Salepur Branch and ₹1,39,48,000 at the Old Secretariat Branch in Cuttack.
Which branches of UCO Bank were involved in the fraud?
The fraud allegedly took place at UCO Bank's Old Secretariat Branch in Cuttack between 2021 and 2024, and at the Salepur Branch between 2024 and 2025, during Das's tenures as Branch Head at both locations.
What action has the Odisha EOW taken so far?
The EOW arrested Das from the Trisulia area of Cuttack district and seized 24 loan documents along with fake KYC papers, forged salary slips, and fabricated vehicle quotations. The case was registered on 19 June based on a complaint from UCO Bank's Cuttack Zonal Head, and further investigation is ongoing.
