Troubling revelations emerged during a session of the Parliamentary Committee on Public Enterprises (COPE Committee) concerning a massive financial loss incurred by the State Mortgage and Investment Bank. The bank reportedly suffered a loss of nearly 70 million rupees due to a fraudulent scheme involving the approval of loans with falsified documents.

It was disclosed that the fraudulent activities transpired when loans were granted to 49 applicants based on deceptive documentation, with the alleged involvement of certain bank officials. This revelation has raised serious concerns about the bank's internal controls and its ability to safeguard public funds.

Bank officials have reported that, in response to the fraudulent activities, legal actions have been initiated to recover the remaining amount of approximately 69.2 million rupees. They have already succeeded in collecting a sum of 8 million rupees as part of the recovery process.

This incident has underscored the importance of stringent measures to prevent fraudulent activities within financial institutions, especially those handling public funds.