Bihar Loan Scam: 500 Villagers Cheated of Rs 5 Crore by ‘Trustworthy’ Agent in Purnia

Purnia: What began as a tale of trust, kinship, and financial hope in Purnia’s Krishnapuri Yadav Tola has unravelled into a complex fraud case that has left nearly 500 people in financial ruin. In the last two years, a man named Umesh Yadav allegedly duped villagers of around ₹5 crore by posing as a facilitator for group loans, preying primarily on those with limited financial literacy.

Now absconding for the past six months, Umesh left behind hundreds of shattered lives, broken trust, and mounting debt. His sudden disappearance, followed by a fake kidnapping claim made by his wife—who has also since gone missing—has deepened the crisis.

From Milkman’s Son to Master Manipulator

Umesh Yadav, the son of a local milk seller, began his career a decade ago with the Bandhan Group as a collection agent. He later climbed the ladder to become the head of a self-help group (SHG). With his modest background and family’s long-standing ties to the community, Umesh gained widespread trust. But villagers now say that trust became the perfect cover for a large-scale financial con.

“He used to call elderly women Khala and youngsters bhai, and attend weddings and funerals like family,” recalled Sarwar Alam, a resident of Krishnapuri. “We never suspected he could do something like this.”

The Modus Operandi

Umesh allegedly targeted rural and semi-literate people, especially those in urgent need of funds. Claiming that their accounts were blacklisted or in danger of becoming inactive, he would convince them to take out larger group loans than needed.

“If someone needed ₹50,000, Umesh would get a loan sanctioned for ₹1 lakh,” said a local resident. “He kept half the money for himself and told the borrower not to worry—he’d repay the loan.”

Initially, he did. But after a few installments, he vanished—leaving the full repayment burden on the borrowers.

Victims Speak: “We’re Paying for His Crimes”

Mohd. Tabrez, one of the affected, shared how Umesh took out a ₹1.3 lakh loan in his name despite his account being cleared earlier. “He paid a few installments and then disappeared. When we visited his house, his wife lied that he had been kidnapped. Later, she threatened us with a false case,” he said.

Sajid Alam, a migrant worker in Chennai, said fake signatures were used to obtain a loan in his name. “Only when I returned home did I find out. I never signed anything.”

Others like Mohd. Azam and Mahira Khatoon spoke of selling their cattle just to keep up with monthly repayments. “The SHG people told me to commit suicide if I couldn’t repay,” Mahira said, breaking down in tears.

Sanjeeda Khatoon, who had given her documents to Umesh for a ₹2 lakh loan for her daughter’s wedding, is now facing pressure from loan agents who are allegedly threatening to seize her home.

A Community Under Pressure

As loan recovery agents and SHG members continue to pressure victims, several villagers have filed a collective complaint with the K. Nagar police. The affected areas include Jhunni Istambrar Panchayat, Bela Rikabganj, Vanbhaag Chunapur, Krishnapuri Yadav Tola, and Madhubani Yadav Tola.

In-charge of K. Nagar police station, Navdeep Gupta, confirmed that a complaint has been registered. “We have initiated an investigation based on the written application submitted by the villagers.”

A Story of Betrayal and Broken Dreams

The villagers now fear that they will be harassed and ruined for loans they never truly received. Many say they trusted Umesh Yadav not just with money, but with their lives and aspirations.

“His father delivered milk on a bicycle 20 years ago. The family was respected. That’s why no one ever questioned Umesh,” said Mohd. Manzoor.

Now, with Umesh, his wife, and his father all missing, justice seems distant. But the villagers continue to hope that the long arm of the law will catch up with the man who turned their trust into tragedy.