Wed Sep 17 18:14:35 UTC 2025: **Summary:**
The Mangaluru city police have arrested three individuals, Muneer Kadam, P. Hussain, and Mohammed Mustafa, in connection with two separate cases of fraud against the State Bank of India (SBI). These cases involve the fraudulent acquisition of loans totaling ₹2.5 crore through the submission of falsified documents at the Mallikatta branch. In the first case, Electro World Enterprises, owned by Abdul Hameed, obtained a ₹1.2 crore loan under the MSME scheme with the help of Muneer Kadam and others. It was later discovered that the loan was not used for its intended purpose and a significant portion was distributed among the accused, including a credit to the bank’s relationship manager, Abhishek Nanda. In the second case, M.H. Enterprises, owned by Mohammed Mustafa, fraudulently obtained a ₹1.3 crore loan using similar methods, with money distributed among the accused, including Nanda. Nanda has been suspended.
**News Article:**
**Three Arrested in Mangaluru Bank Fraud Case, ₹2.5 Crore Siphoned from SBI**
**MANGALURU, September 17, 2025** – Mangaluru city police have apprehended three individuals allegedly involved in a major banking fraud that saw State Bank of India (SBI) lose a staggering ₹2.5 crore. The suspects are accused of obtaining two separate loans by presenting fabricated documents at the bank’s Mallikatta branch.
The arrested include Muneer Kadam, 53, of Ujjodi, P. Hussain, 52, of Nandigudde, and Mohammed Mustafa, 27, of Jeppu. The charges stem from two separate complaints filed by SBI.
According to police reports, the first case involves Electro World Enterprises, owned by Abdul Hameed. The firm allegedly secured a ₹1.2 crore loan under the MSME scheme. SBI’s investigation revealed that the loan was not used for the intended business purpose. A significant portion, ₹1.08 crore, was reportedly distributed among Kadam and other accomplices. Shockingly, evidence suggests funds were also credited to the personal account of SBI’s relationship manager, Abhishek Nanda.
The second case mirrors the first, with Mohammed Mustafa’s firm, M.H. Enterprises, accused of fraudulently obtaining a ₹1.3 crore loan. A similar pattern of funds being diverted among Kadam and other individuals has been uncovered, with further evidence of money being directed to Nanda’s account. ₹ 1.21 crore was distributed among Kadam and the three other accused.
SBI Chief Manager Sourabh Kumar Verma filed both complaints with the police, triggering the investigation. He stated that the loans were initially sanctioned based on recommendations from the now-suspended relationship manager, Abhishek Nanda. Nanda has been suspended.
“The bank is fully cooperating with the police investigation and is committed to recovering the misappropriated funds,” an SBI spokesperson stated.
Police are continuing their investigation, and more arrests may be forthcoming. The investigation will focus on establishing the full extent of the fraud and identifying all individuals involved. The case highlights the ongoing challenges faced by financial institutions in combating sophisticated fraud schemes.
First Piper 