Kochi: The Economic Offences Wing of the State Crime Branch is probing multiple complaints of alleged loan fraud against a Kochi-based businessman. What first appeared to be another commercial loan default or cheating case has now opened the door to a much larger financial fraud investigation. In the latest instance, a complaint of alleged ₹23-crore fraud is also being transferred to the Economic Offences Wing (EOW) of the State Crime Branch.

Palarivattom police registered a case on October 1 against Jenny Varghese, Managing Director of Kochi-based Kanjiraveli Pvt Ltd, and co-directors Geeba Kolliyellil and Jinu Varghese, based on a complaint filed by the Fraud and Vigilance wing of HDFC Bank.

According to the FIR, the accused allegedly secured a ₹23-crore credit facility by pledging forged title deeds for properties that had already been encumbered and mortgaged with Dhanlaxmi Bank’s Palluruthy branch. Palarivattom police are looking into the case, but it will soon be handed over to the Crime Branch (Economic Offences Wing) as the police records indicate that the case is not being viewed in isolation.

“After completing the preliminary documentation, we are transferring the case to the EOW of the State Crime Branch, which has already been collecting and examining multiple cases involving Varghese and his business entities,” said a senior officer at Palarivattom station.

Police records show that the latest complaint is only the newest entry in an expanding dossier involving several financial institutions and police jurisdictions across Ernakulam.

Multiple cases, similar allegations
On January 9, 2026, Palarivattom police had registered a case against Varghese under the Bharatiya Nyaya Sanhita (BNS). The complaint was filed by the non-banking financial company Cholamandalam Investment and Finance Company.

The lender alleged that Varghese and his firm, Kanjiravelil Traders, obtained ₹5.12 crore in working capital by allegedly using forged survey deeds of a plot. The disbursed amount was allegedly routed directly into an ICICI Bank account at Ravipuram.

Another case was registered in Ernakulam Rural in November 2025. Puthencruz Police registered a case following a directive from the Kolenchery Magistrate Court.

In that case, local contractor Eldho Paul alleged that Varghese had promised to arrange a ₹1-cr business loan through the Bank of Maharashtra’s Kakkanad branch. Instead, Varghese allegedly obtained Paul’s signed blank stamp papers and cheques and used them to create a ₹30-crore guarantee agreement without his knowledge.

The alleged transaction eventually resulted in Paul’s ancestral properties being targeted in attachment proceedings before the Chief Judicial Magistrate (CJM) court.

A senior Crime Branch official confirmed that the EOW has received at least five separate case files involving Varghese and his entities. According to the official, the cases show a similar modus operandi.

“Forged documents were submitted, spice stocks that existed only on paper were hypothecated, and large credit limits were secured. When banks conducted physical inspections after defaults, the stocks were allegedly found to be missing,” a Crime Branch officer told Onmanorama.

‘CIBIL score’ scam under scanner
Investigative disclosures and complaints have also linked the cases to the alleged “CIBIL Score” scam that surfaced in Kochi’s financial sector around two months ago.

According to the police, the network approached distressed businessmen and property owners struggling with poor credit ratings and offered to settle their outstanding debts through One-Time Settlements (OTS).

The original owners allegedly handed over documents, signed papers and blank cheques on the assurance that their credit profiles would be repaired. The allegations suggest that these documents were subsequently used to raise multi-crore credit facilities, with the funds allegedly diverted to accounts controlled by Varghese.

The original property owners were then left facing recovery proceedings, according to the complaints.

The investigation widened further in September 2026, when Bank of Maharashtra placed Jenny Varghese, along with three branch officials, on its institutional Fraud List following internal vigilance inquiries into alleged unauthorised credit lines and identity exploitation.

Varghese denies widespread fraud
Varghese was arrested in February 2026 and spent more than a month in judicial custody before obtaining bail from the Kerala High Court. He has consistently denied allegations of widespread fraud.

At a press conference at the Ernakulam Press Club two months ago, Varghese maintained that his businesses suffered genuine commercial losses because of successive disruptions caused by demonetisation and the COVID pandemic.

“My total bank liability stands around ₹350 crore, and I have provided properties worth nearly ₹400 crore as collateral across various banks,” he told the media at that time. “Until March 2025, I was promptly paying EMIs and interest. Over ₹200 crore is actually owed back to me by third parties whom I had assisted financially.”

With the latest HDFC Bank case now moving from Palarivattom police to the Crime Branch headquarters, investigators are looking beyond individual loan agreements.

The EOW is examining whether the separate complaints form part of a wider network involving alleged forged documents, duplicate transactions, shell arrangements and institutional lapses.