Daijiworld Media Network – Mangaluru

Mangaluru, Sept 17: In a major crackdown on financial fraud, Mangaluru City police have arrested three individuals involved in a multi-crore loan scam at the State Bank of India’s Mallikatte branch.

The accused allegedly created bogus companies and submitted forged documents to secure loans totalling approximately Rs 2.5 crore under the MSME scheme, only to divert the funds for personal use.

The scam came to light following a complaint lodged by the SBI Mallikatte branch’s chief manager on September 16, 2025. The police swiftly registered two cases — Crime Nos. 130/2025 and 131/2025 — under relevant sections of the Bharatiya Nyaya Sanhita (BNS), including provisions against forgery and cheating.

Police investigations revealed that M/s Electro World Enterprises fraudulently secured ?1.2 crore, while M/s M H Enterprises obtained Rs 1.3 crore, both through falsified records. Instead of utilising the funds for business activities, the accused allegedly transferred the money across various accounts for their own benefit, inflicting severe financial losses on the bank.

The accused arrested in connection with the scam include Muneer Kadampan Abu Bakkar (53) of Ujjodi, Hussain P (52) from Nandigudda, and Mohammed Mustafa (27) of Jeppu Market Road. Police disclosed that Muneer Abu Bakkar played a pivotal role in both cases, orchestrating the elaborate fraud.

The trio has been taken into custody and will be produced before the court. The cases have now been transferred to the Central Crime Branch (CCB), Mangaluru, for deeper investigation, as authorities probe potential involvement of bank insiders and wider criminal networks.

Mangaluru City police commissioner reaffirmed the department’s commitment to tackling white-collar crimes and urged the public to cooperate in rooting out financial deception.