Roing, Lower Dibang Valley, Arunachal Pradesh – A major inter-state police operation has been initiated following the registration of a ₹15 crore loan fraud case in Lower Dibang Valley district. The case involves alleged misappropriation of funds meant for agricultural and small business loans, with the prime accused reportedly absconding to another state after allegedly duping multiple banks and several local borrowers.
The Arunachal Pradesh Police, in coordination with counterparts in a neighbouring state, have launched a joint manhunt and are conducting raids at multiple locations to trace the main suspect and recover misappropriated money.
Details of the Alleged Fraud
According to the FIR lodged at Roing Police Station:
- The accused, a local businessman, approached several nationalised and cooperative banks in the district between 2022–2025.
- He availed various agricultural term loans, KCC (Kisan Credit Card) advances, and MSME loans by submitting forged land documents, inflated project reports, and fake collateral papers.
- Total amount allegedly siphoned: ₹15.12 crore across 18–20 loan accounts.
- A large portion of the funds was diverted to personal use, invested in unrelated businesses, or transferred to benami accounts in other states.
- When repayment demands escalated and banks initiated recovery proceedings, the accused allegedly fled the state, leaving behind a trail of bounced cheques and non-existent assets.
The case has severely affected small and marginal farmers, SHGs, and genuine entrepreneurs who stood as guarantors or whose land documents were fraudulently used.
Inter-State Police Crackdown Underway
Following registration of the FIR under relevant sections of:
- IPC (Sections 420, 406, 467, 468, 471, 120-B – cheating, criminal breach of trust, forgery, criminal conspiracy)
- Prevention of Corruption Act (where public servants are suspected of collusion)
- Negotiable Instruments Act (cheque bounce)
…a Special Investigation Team (SIT) has been constituted under the supervision of the Superintendent of Police, Lower Dibang Valley.
Key developments in the operation:
- Raids conducted at the accused’s known residences, business premises, and relatives’ houses in Arunachal Pradesh.
- Letters rogatory and lookout circulars issued through the neighbouring state police.
- Bank account freezing orders obtained from competent courts.
- Coordination meeting held between senior officers of both states to share intelligence and execute simultaneous searches.
- Several associates and middlemen have been questioned; some have reportedly turned approvers.
Police sources indicate the accused may have shifted base to Assam or another northeastern state and are actively attempting to liquidate assets to cover tracks.
Public & Official Response
The case has generated widespread anger among local communities and affected borrowers who now face mounting bank pressure. Several farmers have submitted representations to the Deputy Commissioner and District Lead Bank Manager seeking relief and intervention.
The District Administration has assured that:
- All genuine guarantors and affected parties will be provided legal aid.
- Banks have been directed to initiate one-time settlement (OTS) or restructuring wherever possible for innocent borrowers.
- A detailed verification of all similar high-value loan accounts in the district has been ordered to detect any pattern of organised fraud.
The Chief Minister’s Office has taken cognisance of the matter and directed the Director General of Police to personally monitor the investigation and ensure swift arrest and recovery of funds.
This high-value fraud case highlights the urgent need for digitisation of land records, stricter KYC norms for loan sanctioning, and inter-departmental coordination to prevent similar scams in Arunachal Pradesh’s rural and semi-urban banking sector.
Relevant Tags
Lower Dibang Valley Loan Fraud, ₹15 Crore Bank Scam Arunachal, Inter-State Police Operation, Loan Fraud Investigation Roing, Arunachal Pradesh Economic Offence, Forged Land Documents Fraud, KCC Loan Misuse Case, Northeast Bank Fraud, SIT Formed Loan Scam, Arunachal Police Crackdown
Hashtags
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