Ukhrul: In a startling case of identity theft and financial fraud, a man allegedly exploited the personal information of farmers from 34 villages in Manipur’s Ukhrul and Kamjong districts to secure lakhs of rupees in bank loans. The fraud came to light after several farmers began receiving recovery notices for loans they had never applied for.
On Monday, hundreds of affected farmers staged a peaceful rally in Ukhrul town, demanding justice over alleged fraudulent loans taken out in their names under false promises of the Kisan Credit Card (KCC) scheme.
After the rally, the protesters submitted a complaint letter at the Superintendent of Police’s office, urging criminal action against one Somi Awungshi for allegedly misusing the identities of 1,211 farmers to obtain KCC loans from IDBI Bank (1,000 farmers) and Canara Bank (211 farmers) without their consent or knowledge.
According to Jairus GS, a victim from Lunghar village and convenor of the Joint Action Committee (JAC) IDBI and Canara Bank False Loanees, Awungshi, a resident of Tangkhul Hundung Khullen in Kamjong district, collected electoral ID cards from farmers as early as 2013. At the time, he claimed the documents were required to help facilitate government welfare and beneficiary schemes for poor farmers.
However, ten years later, the farmers were shocked to discover they had outstanding loans of ₹50,000 each—information that only surfaced when banks began issuing them legal notices.
Jairus alleged that Awungshi fraudulently withdrew the KCC loan amounts through an Imphal-based NGO named Kabongram Asa Kashung Shang Social Upliftment Society (KAKSSUS), without informing or involving the actual beneficiaries.
According to its website, KAKSSUS is an NGO focused on social upliftment. The JAC convenor pointed out that since most of the victims are illiterate, many had misplaced or failed to understand the legal notices. Only after some farmers noticed unexplained deductions from their accounts did the community form the JAC in 2023 to collectively fight the fraud.
“After forming the JAC, our executive members met with Awungshi multiple times. He initially assured full repayment to the victims, but despite repeated follow-ups, he failed to take any concrete steps. That’s why we launched this mass protest and submitted the complaint to the Ukhrul SP,” Jairus said.
In April 2025, the Member Secretary of the Manipur State Legal Services Authority, Imphal issued an intimation notice summoning the farmers to appear before the Lok Adalat at Lamphel Court Complex to settle the dues.
The notice stated:
A borrower of loan account no. Xxxxx has outstanding book dues of ₹1,69,306 with interest calculated up to 11.04.2025. Whereas Canara Bank, Imphal Branch approached the Manipur State Legal Services Authority, Imphal requesting to settle the matter of outstanding dues in the National Lok Adalat. In this respect, you are requested to appear in person before the National Lok Adalat organised by the Manipur State Legal Services Authority at the Lamphel Court Complex, Lamphel, Imphal on 10.05.2025 at 10:00 AM without fail to discuss the matter. The assurance/assistance of the lawyer is not mandatory in Lok Adalat.
Shocked by the legal action, the farmers have appealed to authorities to urgently investigate Somi Awungshi’s role and unearth the full extent of the scam.
Sword Mahung, a farmer from Lungphu village, said that his initial loan of ₹50,000 has now ballooned to more than ₹1.5 lakh, adding that the scam exploited the absence of Aadhaar at the time. Farmers had submitted copies of their voter ID cards to Awungshi under the belief that he was facilitating government schemes.
“We were completely in the dark. It was only after receiving legal notices that we realised we were saddled with debts we never took,” he said.
Sarimaya, a resident of Hungpung village, said he learned about his late father’s loan status from another victim—who also passed away recently. He alleged that Awungshi used identity documents collected from vulnerable farmers to open accounts and withdraw funds in their names without providing any bank books or related documents.
According to him, Awungshi had registered a single mailing address to which all bank communications and passbooks were sent, allowing him to control the loan process without the farmers’ awareness. The misuse of the KAKSSUS Society in facilitating these transactions, he said, raises questions about how such large-scale fraud went unnoticed by the banking system.
The incident has raised serious concerns about data protection, banking oversight, and the vulnerability of rural populations to financial fraud—especially in regions where digital literacy remains low.
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