Fake Firms Cheat SBI Mallikatte Branch of ₹1.3 Crore; All Accused Arrested
Mangalore Today News Network
Mangaluru, Oct 19, 2025: A major loan fraud involving fake companies floated to exploit Central Government loan schemes has been unearthed in Mangaluru. The accused allegedly set up two bogus small-scale industrial units and, with the help of a bank official, availed loans amounting to ₹1.3 crore from the State Bank of India’s (SBI) Mallikatte branch.
The fraud came to light during an internal audit, following which the bank lodged a complaint at Kadri Police Station on September 16. The case was later transferred to the Mangaluru City Crime Branch (CCB), which arrested all the accused, including a bank officer.
Those arrested have been identified as Mohammed Mustafa, Fatima Shabnam, Muneer Kadman, Safiya, and SBI Relationship Manager Abhishek Nanda.
According to police, Mohammed Mustafa, a native of Puttur presently residing in Jeppu, had applied for loans in the names of M.S. Enterprises and Fusion Dot Enterprises, claiming he was establishing small-scale industries. He submitted loan applications on August 8, 2023. Relationship Manager Abhishek Nanda, who verified the applications and falsely reported that the units had been inspected, facilitated the sanctioning of ₹75 lakh to M.S. Enterprises on September 13, 2023, and another ₹55 lakh to Fusion Dot Enterprises the following day.
When the borrowers failed to make repayments even after a year, the bank initiated an internal inquiry. The investigation, led by Chief Manager Saurabh Kumar, revealed that the loan amounts were diverted to personal accounts instead of being used for industrial purposes. Transactions included ₹55 lakh transferred to Fatima Shabnam, ₹32 lakh to Fusion Dot Enterprises (Mustafa’s account), ₹14 lakh to Muneer Kadman, and ₹20 lakh to Safiya, who along with Shabnam, are mother and daughter. Both have been arrested.
Further investigation showed that large sums were also credited to an ICICI Bank account in Mysuru belonging to Abhishek Nanda, the SBI official involved in the case.
Police sources said the alleged mastermind, Ashiq, who specialized in forming fake companies and securing loans through insider connections, is currently absconding. He is believed to have operated a firm named Miles of Files Enterprises in Attavara, which he used as a front to obtain loans by naming his wife as the proprietor.
According to the police, the accused had turned loan fraud into a business, helping several individuals illegally secure funds under Central Government schemes such as Mudra. Several crores are believed to have been misappropriated through such fraudulent practices.
Authorities said all loans sanctioned through Nanda’s recommendation at the Mallikatte branch are now under scrutiny.