Mumbai: A major financial fraud involving ₹2.40 crore has come to light at the Konkan Railway Region (Urban) Co-operative Credit Society Ltd. Former chairman Abhijeet Deshmukh, who held the post between 2020 and 2023, along with several officers and employees, is accused of misusing his position to sanction fraudulent loans, causing significant financial losses to the credit society and its partner bank.
Based on a complaint filed by the society’s Managing Director, Sachidanand Shetty, the Matunga police have registered an FIR against Deshmukh, 48 fake loan beneficiaries, and other involved staff members. The case is now being investigated by the Economic Offences Wing (EOW).
According to the complaint, Deshmukh allegedly misled the board of directors and misused his authority to approve loans meant exclusively for Konkan Railway employees. These loans were fraudulently sanctioned to individuals falsely shown as Konkan Railway staff, using forged documents.
The investigation revealed that fake documents were submitted to New India Co-operative Bank, Mumbai, under the guise of genuine employee credentials. Loans worth ₹2.40 crore were obtained under false pretenses and allegedly diverted for personal gain, with no repayment made to date.
As a result, the Konkan Railway Credit Society, New India Bank, and the society’s members have suffered substantial financial losses. The FIR has been registered under IPC Sections 120(B) (criminal conspiracy), 409 (criminal breach of trust), 420 (cheating), 465, 467, 468 (forgery), and 471 (using forged documents). The EOW is conducting a detailed probe into the case.
