SBI Chief Manager Held in Rs 1.35 Crore PMEGP Loan Scam in Bhavnagar
May 07, 2026
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
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From the year 2013 to 2017 I lost a few lakhs of money & Dollars earned from the business done separately through the Reserve Bank of India, State Bank of India and ICICIBANK after retirement from 35 yrs. of service in Jadavpur University, Kolkata. All documents, Bank Pass Bbook are kept till today. It was learnt that some people in Delhi residents who were involved in this business alongwith Reserve Bank of India, State Bank of India and ICICI Bank withdrew the entire money saved in the bank account of mine as well as of mass people involved at that time. I am an honest and disciplined citizen with NCC “B” Certificate holder. To overcome my financial condition I was engaged in those businesses separately. This is the picture of our banks including the Reserve Bank of India. We, the common middle class people are sufferer, probly since Independence. Indirectly, our government is looser in the development of the country as a whole.