Madhya Pradesh Loan Scam Allegedly Diverted MSME Funds and Machinery

Officials in Madhya Pradesh say they found a suspected scam involving business loans.

A businessman discovered that a Rs 10 lakh loan had been approved in his name.

He said he received neither the money nor the machinery the loan was supposed to buy.

Investigators allege that forged documents were used to obtain the loan.

They say Rs 8.85 lakh was moved among several people instead of being used to buy machinery.

The bank reportedly processed the loan in about four hours.

Investigators also said the bank did not inspect the business or properly check the machinery seller.

They found five loans linked to the same branch and three other similar cases.

Several people, including a branch manager and suppliers, were charged under cheating and conspiracy provisions.