Ludhiana, April 10 -- Ludhiana Rural Police have booked a bank employee for allegedly siphoning off Rs.3.9 crore by misusing the Centre's Pradhan Mantri Mudra Yojana (PMMY) at a branch of Indian Overseas Bank in Baddowal.

The accused, a former branch manager, allegedly created fake loan accounts to embezzle funds under the collateral-free loan scheme meant for small businesses.

An FIR has been registered at Dakha police station against Pankaj of Patel Nagar on the complaint of the bank's Regional Manager, Umakanta Samal.

According to the complaint, the fraud came to light during a routine review in January 2026, when the Regional Office noticed an unusual spike in agricultural and allied loans disbursed in December 2025, far exceeding ...