Mumbai: Vigilance dept of WR busts fake loan racket by rail workers

JCCS Bank at Naushir Bharucha Marg, Grant Road. Pics/Hanif Patel

A tip-off to the Vigilance Department of Western Railway has unearthed a major racket by hundreds of rail employees, who forged documents to take out marriage loans from JCCS Bank. The accused staffers took out loans, offered at a low interest rate by the bank for Western Railway employees, and either invested it for higher returns or used the money for other purposes. While some fudged the age of their minor sons for the loan, others created fake Aadhaar cards of non-existent children.

During the investigation, the Vigilance officers found out that many of the accused employees used the loan amount to open Fixed Deposit accounts at the same bank or other banks, for higher rates of interest. Besides forging documents, they used fake railway stamps to get the marriage loan. The Mumbai Vigilance Department busted the racket based on a tip-off and unearthed more than 120 fake loans. Officers learnt the involvement of several agents who helped the rail employees forge the documents.

A photocopy of the fake Aadhaar card submitted by staffer Munir Ahmed Mansuri; a copy of a wedding card submitted to the bank for a loan

It conducted an inquiry against JCCS Bank (Jackson Co-Operative Credit Society Of The Employees Of The Western Railway Ltd.), located at Naushir Bharucha Marg in Grant Road. The bank has more than 1 lakh Western Railway employees as members. The vigilance officers have seized the loan forms, which contain fake ID cards, fake wedding invitation cards and other documents with fake rail stamps. Most of the employees, who defrauded the bank over several years, are from Lower Parel workshop in the city, Vadodara and Surat in Gujarat, sources told mid-day.

The bank offers an interest rate of 5 per cent for marriage loans and 6.75 per cent for personal loans. To take out a marriage loan, employees have to submit the form to their respective co-operative credit society office, present at various locations, and it is easily sanctioned. As the bank does not have the family details of the employees, there was no way to cross-examine the authenticity of the loan requirement.

JCCS Bank

An officer from the Mumbai Vigilance Department said, "We started the probe based on a tip-off. Our chief Vigilance Inspector Mayur Kensali seized the loan documents and upon verification, they were found to be forged. Most of the cases are of employees from Valsad, Surat and Mumbai city."

How they fooled bank?

Sources from the Vigilance Department said, "In the loan application, they gave fake names of their children. The JCCS Bank doesn't have family records of the employees. The agents helped the Western Railway employees forge Aadhaar card and marriage invitation card, for which they charged them. The agents also gave them fake rail stamps. Every employee of WR has to take the departmental stamp from their senior officers for loan applications. On the basis of the stamp, the JCCS Bank sanctioned the loans."

A form that was submitted to the bank by Munir Ahmed Mansuri. Pic/Hanif Patel

In one case, employee Munir Ahmed Mansuri took out a loan of Rs 3 lakh for his son's marriage. However, the Aadhaar card and name of the son, Faizan, in the forms were all fake. As per the railway records, he doesn't have a son named Faizan.

Ravindrakumar Kori also submitted fake forms and took out a loan of Rs 3 lakh. Kori has a son, but the name used on the form was fake.

Kolakudi S Srinivasan, JCCS Bank CEO

Confirming the development, Deputy Chief Vigilance officer Seema Jakhadi said, "We have started the investigation in this case. We can't comment at this stage."

Speaking with mid-day, JCCS Bank CEO Kolakudi S Srinivasan said, "...The vigilance department is conducting an inquiry into the matter. We will take appropriate action as and when needed."

Chief PRO Western Railway Sumit Thakur said, "I don't have any information about this. Since the Vigilance Department is working on it, it will submit the report and accordingly, an action will be initiated."

120
No. of fake loans identified so far