One of the biggest loan scams of the present time has been reported against two officials of Bank of India. The officials have been said to have lent out as much as Rs 3.5 crore to 114 people without any collateral security. The case has been reported to have occurred in Kunti district of Jharkhand.

A CBI probe revealed many dubious documents to have been found in the homes of these two bankers. A case under different Sections of IPC and the Prevention of Corruption Act has been registered against Patras Sanga, manager, and Dev Kant Jha, assistant manager, Bank of India, Karra Branch in Khunti district.

"It is alleged that the accused public servants entered into a criminal conspiracy with some unknown people in 2009-10. They allegedly abused their official position as public servants, and sanctioned and disbursed cash credit limit to as many as 114 loan-seekers for around Rs 3.5 crore," said CBI spokesperson Harsh Bhal.

"These loans were sanctioned without obtaining the collateral security documents and also without conducting mandatory pre and post-sanction inspection. Hence, the bank is not in a position to realise the amount by initiating coercive legal action due to want of collateral security documents," he added.

Loans were reportedly sanctioned to 17 people with fictitious identity. Also the bank cannot take any legal action against these borrowers as there are no loan documents.

"The bank officials did not carry out mandatory inspection of business premises of the loan applicants, which is usually carried out by the bank before and after sanctioning of loans. That's why, no documents are available," said a CBI official.