Rana Dilip Suryavanshi had ambitions. The Chhatrapati Sambhajinagar-based trader ran a shipping and import-export firm — Rana Shipping — alongside educational institutions, and was looking to scale up. He needed finance. What he got instead was a masterclass in deception.

According to a complaint filed at Osmanpura Police Station, Suryavanshi was introduced online — through his own manager, Joseph Robin — to a man named Ritesh from Kerala, who presented himself as the owner of Lotus Hotel. Another contact, referred to only as Reddy, was brought into the picture soon after. The duo arranged a face-to-face meeting in Hyderabad, where they rolled out the red carpet: introductions to four or five local businessmen, an air of credibility, and a promise of a ₹25 crore loan.

The catch? A "processing fee" of ₹2.5 crore — refundable, they assured, once the loan was disbursed.

Suryavanshi transferred the money in four instalments. Then the silence began. Calls went unanswered. When he travelled to Kerala to confront them in person, neither Ritesh nor Reddy could be found at the addresses he had been given. The ₹25 crore loan, needless to say, never came. The Economic Offences Wing is now investigating the case.

What happened to Suryavanshi is, unfortunately, not unique. It follows a well-worn fraud playbook that is sweeping across India. The Reserve Bank of India has flagged a sharp rise in bank-related frauds — up 194% to ₹36,014 crore in FY 2024–25 — with loan-related schemes accounting for a significant chunk of the money lost.

The mechanics are almost always the same: a large, attractive loan is dangled in front of a cash-hungry business owner. Trust is built through referrals, real-sounding credentials, and staged social proof — such as meetings with other 'businessmen.' Then comes the demand for an upfront fee, dressed up as a processing charge, insurance premium, or security deposit. Once the money is paid, the fraudsters vanish.

No legitimate lender asks for a fee before disbursing a loan. Reputable institutions deduct any processing charges from the loan amount itself — not beforehand. If money is demanded upfront, it is almost certainly a scam.

Several warning signs were present in Suryavanshi's case that apply broadly to any entrepreneur approached with an unsolicited loan offer:

• Third-party introductions: The fraud began through his manager, not a verified financial institution. Loan offers that arrive via informal intermediaries deserve extra scrutiny.
• Too-good-to-be-true terms: A ₹25 crore loan with seemingly minimal paperwork is an immediate red flag.
• No verifiable address: When Suryavanshi visited Kerala, the accused were untraceable — a hallmark of fraudulent operators.
• Pressure to pay in instalments: Splitting the fee into four parts can lower a victim's psychological guard at each step, making the total amount feel smaller than it is.

If you suspect a loan scam, act immediately on multiple fronts:

• Report to local police and file a formal complaint at the nearest police station.
• File a complaint on India's National Cybercrime Portal at cybercrime.gov.in or call the dedicated helpline at 1930.
• Verify any lender's registration with the Reserve Bank of India before engaging — the RBI maintains a public database of authorised institutions.
• Never transfer money to an unverified account on the promise of a future loan disbursement, regardless of how official the documentation appears.

Ambition is not a flaw. But in a landscape where fraudsters actively target growth-hungry entrepreneurs, caution is as important a business tool as capital.