Fake PAN-Aadhaar Loan Racket Busted: Ex-Minister's Son Duped, Man Arrested for Cheating

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Loan Fraud Ring Busted by Cyber Crime Police

A sophisticated loan fraud ring that used counterfeit PAN and Aadhaar documents to secure consumer loans and purchase high-end electronics and vehicles has been dismantled by the Cyber Crime Police.

Mastermind Arrested

The mastermind behind the scheme, who was arrested, allegedly used the identity of a former state minister’s son, Shailendra Singh, to obtain loans without his knowledge.

The investigation began when Singh received a recovery call from a finance company regarding an unpaid loan of ₹82,600, which he had no knowledge of. Upon further inquiry, he discovered that his PAN number had been compromised and linked to three fake Gmail IDs and a mobile number. Moreover, loans worth lakhs had been sanctioned in his name from various financial institutions.

Police Probe Reveals Illicit Gains

The police probe, led by Cyber Crime Nodal Officer Aditya Singh, revealed that the gang had been active since 2021 and had generated illicit gains of approximately ₹2.5-3 crore. The accused, Nitin Chaurasia, was arrested after surveillance led the police to a rented premises in Chanakyapuri, Garhi Bhadauria, where several electronic items had been delivered.

During interrogation, Chaurasia disclosed that he had previously worked with a finance company, where he became familiar with the instant consumer loan process and exploited the verification gaps to secure loans using forged documents.

The gang purchased high-value items, including motorcycles, televisions, and mobile phones, which were delivered to rented accommodations to avoid detection.

Victims Left with Damaged Credit Histories

The loan fraud racket has left several victims with damaged credit histories, as their CIBIL scores were severely impacted. The police estimate that multiple individuals have been affected, many of whom were unaware of the fraud until they received recovery notices from finance companies.

Prevention and Action

To prevent such incidents, cyber crime officials have advised citizens to safeguard their PAN, Aadhaar, and other identity documents and regularly monitor their credit reports. Any suspicious loan entry, recovery call, or unknown financial account linkage should be reported immediately to the cyber crime police.

The authorities are strengthening coordination with financial institutions to plug verification loopholes in digital lending processes and ensure stricter checks. The crackdown is part of a broader effort to dismantle organized loan fraud networks operating through identity theft and forged documentation.