Whistleblower alleges massive mortgage fraud in Nellore

Nellore City News

Posted by AI on 2025-07-30 22:55:50 | Last Updated by AI on 2025-12-12 18:38:23

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A recent revelation has shed light on a massive mortgage scam in the Nellore district of Andhra Pradesh, shocking authorities and underscoring vulnerabilities in the banking system.

The scam, estimated at a staggering Rs 62 crore, was brought to light by a whistleblower who alerted authorities about a suspected fraud involving several accounts at the Andhra Pradesh State Cooperative Bank (APSCB).

Upon investigation, APSCB officials discovered that the whistleblower's allegations had merit, and they subsequently notified the Tirupati Urban Cooperative Bank (TUCB), which had extended loans worth Rs 41 crore to four primary borrowers under the scam.

These primary borrowers then allegedly siphoned and laundered the money through various means, including shell companies. The remaining Rs 21 crore of the scam amount is believed to have been routed through illicit means by the borrowers or their connections.

Officials from the TUCB have acknowledged the scale of the fraud, and they are now working with law enforcement agencies to address the matter and determine the exact mechanisms used to perpetrate the scam.

This news is a stark reminder of the importance of strengthening internal processes and monitoring mechanisms in financial institutions to detect and prevent such large-scale fraud. It also underscores the crucial role whistleblowers play in exposing such wrongdoing, highlighting the need for robust protective measures for whistleblowers.

As investigations continue, the public awaits further updates on the perpetrators of this massive scam, seeking justice and resolution for the vulnerable borrowers who may have been unwittingly caught up in this elaborate fraud scheme.

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