Hyderabad Businessman and Associates Face Charges in Elaborate Rs 1.7 Crore Bank Fraud
What initially appeared as a standard land transaction in Hyderabad has escalated into a major criminal investigation, uncovering a complex scheme involving fabricated property records, duplicate loans, and circular financial movements. The Central Crime Station (CCS) has officially registered a case against Hyderabad-based businessman Bayana Prakash and seven other individuals for allegedly defrauding ICICI Bank of a staggering Rs 1.7 crore.
Details of the Alleged Fraudulent Loan Scheme
According to a formal complaint filed by Amarjeet Mundra, the Regional Head for Mortgages at ICICI Bank's Begumpet branch, the fraudulent activities began in February 2023. Prakash, originally from Rajahmundry, applied for and received a land loan amounting to Rs 1.02 crore. The stated purpose was to purchase a 375-square-yard plot located in the Tarnaka area of Hyderabad.
The loan application listed Prakash's mother, Bayana Bhanu Mydhily, as a co-borrower. Following approval, the entire loan amount was disbursed directly into the bank account of the purported seller, K Narsing Rao.
How the Scheme Unraveled: Suspicious Delays and Site Discovery
The bank's suspicions were first aroused when there were unexplained delays in finalizing the property transaction. This prompted officials to conduct a physical inspection of the plot in question. To their astonishment, they discovered that construction of a multi-storeyed building was already underway on the site, being carried out by an unrelated third party who had no connection to the loan agreement.
This alarming discovery triggered an intensive internal audit of all submitted documentation. The investigation revealed severe and deliberate discrepancies.
Forgery at the Core: Fabricated Sale Deeds and Signatures
The bank's complaint details a critical finding: the certified copy of the sale deed provided by the borrower was a complete fabrication. This document, allegedly executed by the S Hussain Zaheer Memorial Educational Society (represented by its president, Ali Jaffar Ahmed) on May 4, 2015, in favor of Narsing Rao and Y Kamala Rani, was registered at the Hyderabad sub-registrar office.
"Upon retrieval and verification, it was conclusively found that the document submitted to the bank was forged," the complaint states. Key indicators of fraud included inconsistencies in spellings and signatures when compared to authentic records.
The Circular Money Trail: Loan Funds Routed Back to the Borrower
The investigation took another serious turn when the bank traced the movement of the disbursed loan funds. Financial records showed that after receiving the Rs 1.02 crore, the seller, Narsing Rao, transferred approximately Rs 87 lakh back to multiple bank accounts that were directly linked to the primary borrower, Bayana Prakash.
When questioned, Narsing Rao reportedly claimed that the actual sale consideration for the land had been paid much earlier, and therefore the loan amount was simply being returned. This admission confirmed the bank's suspicion of a "circular movement of funds" between the seller and the borrower, indicating the entire transaction was orchestrated to illicitly obtain bank funds.
Duplicate Loan for Partnership Firm Using Same Fictitious Property
Adding another layer to the alleged fraud, the complaint further accuses Prakash and his business partner, Potturi Poornima, of using the very same non-existent or disputed Tarnaka plot as collateral. In August 2023, they secured an additional overdraft facility of Rs 68 lakh for their partnership firm based on this fabricated asset.
Legal Action and Police Investigation Underway
Based on the comprehensive complaint from ICICI Bank, the Hyderabad police formally registered a case on February 4. The charges are severe, filed under multiple sections of the Bharatiya Nyaya Sanhita, including:
- Cheating
- Criminal Conspiracy
- Forgery of valuable security or will
A senior official from the Central Crime Station commented on the ongoing probe, stating, "We are meticulously verifying all evidence presented in the complaint. Appropriate legal action will be decisively initiated based on the findings of our preliminary investigation." The case highlights significant vulnerabilities in loan verification processes and the sophisticated methods employed in financial fraud.
