Panchkula ₹17.5 lakh personal loan scam: 5 red flags every Indian borrower should watch for

In a recent financial fraud in Panchkula, a woman and her husband lost ₹17.5 lakh to a man posing as an Indian Army captain. According to reports, the accused, identified as Sagar Guleria, allegedly convinced the couple to transfer a sanctioned personal loan amount to his account.

He claimed the transfer was necessary to help them access housing loan assistance and government subsidies. The incident offers crucial lessons for prospective personal loan and home loan borrowers to safeguard themselves from financial crimes and ensure a seamless borrowing experience.

How did the scam unfold?

Satpal Singh, a Naik in the Indian Army and his wife Manpreet Kaur were introduced to the accused Guleria through an acquaintance. During their initial interaction, Guleria claimed to have close connections with banks and promised to help the couple secure a personal loan on favourable terms, including subsidy benefits.

On May 8, 2024, a loan of ₹17.5 lakh was sanctioned and credited to the couple's joint State Bank of India (SBI) account. Guleria then persuaded them to credit this entire amount to his account through Real-Time Gross Settlement (RTGS).

He stated that this was a necessary step to process the subsidy. Once the money was transferred, Guleria changed his behaviour completely and stopped responding to the couple. 

A background check and investigation later revealed that he was not a serving Army officer. In fact, he was a declared deserter, with police records confirming his absconding status.

What are five red flags all aspirational borrowers should watch out for?

1. Properly check the real identities of individuals: Focus on and verify the credentials of individuals claiming to be official agents or associates of financial institutions. Be clear: Banks are big financial institutions. They hire individuals to assist them with day-to-day functions and not to distribute loans or credit cards in a random, choice-based, and biased manner. Every single penny is accounted for, and nothing at all comes for free in the world of banking and finance.
2. Avoid making upfront payments: Never make upfront payments if someone asks you to do the same. Be clear, your bank or any of its legitimate officials will never ask you to transfer funds into their accounts to help with processing loans and subsidies. This is a clear sign of a financial scam. Never fall for such tricks.
3. Stay away from pressure tactics: Do not fall for urgent demands of fraudsters. Stay away from the pressure tactics they apply. Scammers often create a sense of urgency for some scheme or subsidy, etc., to create a sense of thrill and urgency in victims. This is done to push victims into making hasty decisions. Never follow such directions blindly.
4. Never share sensitive information: Time and again, prominent government institutions such as the RBI, SEBI, etc, come out with press releases and television advertisements to make citizens aware of their rights. The goal is to teach citizens involved with banking, personal loans, credit cards, etc, never to share OTPs, passwords, CVVs, PINs, and other extremely confidential information with anyone. Such sharing can result in financial crimes. No bank or its legitimate official will ever request you share such details via phone, video, or text. This should again be taken as a clear sign of fraud.
5. Avoid unbelievable and too good to be true offers: You should never fall for promises or offers that are too good to be true. Always have a counter question to such lucrative offers. Think, why will a bank or financial institution give you such an offer? Offers that promise substantial benefits with nearly no effort should be carefully examined and avoided.

Rising financial frauds in India

According to a recent report by the Reserve Bank of India (RBI), the total cases of banking frauds have risen by 27% in the first half of 2024-25 compared to the same period last year.

This highlights the increasing importance of spreading financial literacy among citizens who are involved with banking and financial transactions on a daily basis.

Hence, by keeping these simple ideas and data in mind, aspirational personal loan and home loan borrowers, along with credit card applicants, can ensure that they make well-informed financial decisions.

Disclaimer: The information contained herein is for informational purposes only and should not be interpreted as professional financial advice. Please consult certified advisors before proceeding.