Bhavnagar: Neelam Bagh Police have arrested the chief manager of a State Bank of India (SBI) branch in connection with an alleged Rs 1.35 crore loan scam under the Prime Minister’s Employment Generation Programme (PMEGP) in Bhavnagar.

The arrested official, identified as Santosh Kumar, was taken into custody after investigators found alleged irregularities in the approval of loans issued under the central government scheme meant to support small entrepreneurs.

According to police, a complaint regarding fraud and irregularities in PMEGP loans amounting to Rs 1.35 crore was registered at Neelam Bagh Police Station on March 31. The investigation revealed that loans were allegedly sanctioned on the basis of bogus documents and without proper verification.

Police said Santosh Kumar, along with agents and loan beneficiaries, allegedly played a key role in facilitating the fraudulent loan approvals by overlooking banking norms and verification procedures.

Officials stated that substantial evidence was gathered during the probe before the bank manager was detained and later arrested.

Earlier in the investigation, police had arrested four women loan beneficiaries and two agents allegedly involved in operating the fraud network. During interrogation, the name of the SBI chief manager surfaced, following which the investigation was intensified.

Neelam Bagh Police are now probing whether any other bank employees or officials were involved in the scam. DeshGujarat