Joint Registrar orders probe into cooperative bank loan scam

The loan scam involving crores of rupees detected at the district cooperative bank branch on the Press road in Thiruvananthapuram points fingers at the bank directors and officials.

THIRUVANANTHAPURAM: The loan scam involving crores of rupees detected at the district cooperative bank branch on the Press road in Thiruvananthapuram points fingers at the bank directors and officials.

Cooperative Joint Registrar K Sankar ordered a probe into the scam involving Rs 10.17 crore rupees. The High Court had ordered the Cooperative Department to conduct the probe following the finding that crores of rupees were granted to benami names.

The bank has granted Rs 4.90 crore in 650 loans  up to 2016. It has an interest due of 5.27 crore. Following the High Court order, the Cooperative Department was initiating action  under section 66 of Cooperative Act.

In the preliminary investigation, it was found some of the borrowers provided fake name and address to avail the loans. Cooperative  Department sources preferring anonymity told Express that some of these borrowers were availing loan under benami names.  The Cooperative Joint Registrar is probing the loans granted from 2002. In the loans granted in 2012 that several benamis names were found. Sources point out the benamis could not have claimed the loans without the blessings of the  DCB directors.

Related Stories

No stories found.
The New Indian Express
www.newindianexpress.com