Ghaziabad CBI Court Sentences Man to Over 3 Years in ₹99 Lakh Loan Fraud Case

Ghaziabad | November 21, 2025 — A Special CBI Court in Ghaziabad has sentenced Kapil Kumar, a private individual, to three years, seven months, and ten days of simple imprisonment along with a ₹50,000 fine for orchestrating a large-scale bank loan fraud. The verdict, delivered on Friday, relates to a 2017 housing loan scam involving forged documents and misuse of sanctioned funds.

Loan Fraud Case Originated in 2017

The Central Bureau of Investigation (CBI) registered the case on 13 September 2017 after detecting irregularities in the approval of a ₹99 lakh housing loan. According to investigators, Kapil Kumar—acting in collusion with other private persons—submitted forged property papers, fake identification documents, manipulated income statements, and incomplete loan documents to secure the loan in his and his wife Manisha Devi’s name.

The fraudulent documentation was crafted to avoid mandatory verification and mislead bank officials during the loan approval process.

Misappropriation of ₹96 Lakh After Loan Sanction

Once the loan was sanctioned, Kumar allegedly withdrew around ₹96 lakh from the loan account. Instead of using the funds for purchasing or developing the proposed plot, he diverted the money for unauthorized purposes.
CBI officials confirmed that the fraudulent actions, involving both private and public individuals, caused a wrongful loss of ₹1,17,66,950 to Canara Bank’s Ghaziabad branch (formerly Syndicate Bank).

Charge Sheet Filed After Detailed Probe

Following years of investigation, the CBI filed its charge sheet on 23 December 2021, naming Kapil Kumar along with other accused individuals, including government officials.
The Special Court framed formal charges on 18 July 2025, after which the trial commenced. The prosecution submitted bank records, forensic reports confirming document forgery, and multiple witness testimonies to establish cheating, criminal conspiracy, and forgery under relevant laws.

Accused Pleads Guilty During Trial

In a major turning point, Kapil Kumar submitted a guilty plea application on 12 November 2025. After ensuring the plea was voluntary, the Special Judge of CBI Anti-Corruption Court No. 1 accepted the application and convicted the accused.

Court Stresses Need for Stronger Financial Safeguards

While announcing the sentence, the court underscored the critical impact of financial fraud on public institutions.
The judge remarked:

“Loan fraud and misuse of sanctioned funds compromise institutional integrity and demand strict punitive measures to deter future offenses.”

The court emphasized that stronger scrutiny, verification, and ethical compliance are essential to protect public financial systems.

CBI Welcomes Verdict as Boost to Financial Transparency

The CBI praised the judgment, noting that the sentencing reinforces ongoing efforts to curb financial crimes in banking institutions. Officials stated that the case underscores the consequences of manipulating public finance mechanisms and serves as a deterrent against similar fraudulent practices.

The ruling is viewed as an important step toward enhancing accountability, transparency, and trust in India’s lending ecosystem.