With the arrest of a person, the Noida Police on Thursday claimed to have busted a gang that allegedly duped banks to the tune of Rs 23 crore by taking loans from them in the name of firms and employees which existed only on papers.
The gang used forged Aadhaar cards and PAN to float bogus firms and even got them registered with the Registrar of Companies as part of its conspiracy to swindle money from various banks, the police said.
"The Phase 1 police station officials have arrested one person, identified as Mohammed Rafi alias Mohammed Rafiq (31), in connection with the case. There are more people associated with him and efforts are underway to arrest them," Additional DCP (Noida) Shakti Mohan Avasthy said.
According to the police, the gang would use the forged documents, including PAN card numbers, to float firms which would even have employees who were paid monthly salaries and had EPFO accounts as well. Except for the salaries, everything else was just on papers and bogus.
The salaries were paid in the accounts of ghost employees for six to seven months in order to establish them as genuine account holders and make the employer eligible to take loans from banks, they said.
"The gang paid salaries in the employees' bank accounts and then withdrew the money through ATMs and once again deposited the amount in the firm's account to establish them as genuine entities," a police spokesperson said.
"Eventually, the gang would get cars, mobile phones and other items financed by banks through loans on the back of these bogus firms and employees but did not repay it. Till now, these people have taken about Rs 23 crore as loan from various banks and have not returned it," the official added.
The police action came following a written complaint of fraud by a senior official of the HDFC Bank and the FIR was lodged at the Phase 1 police station.
Police said they have recovered a finger print device and a retina scanner from the possession of the arrested accused, who has been booked under Indian Penal Code sections 420 (cheating), 467, 468 and 471 (all related to forgery), 406 (criminal breach of trust), 120B (party to criminal conspiracy).
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