VELLORE: The Economic Offences Wing (EOW) arrested two clerks of the Urban Co-operative Bank near Walaja in Ranipet, on Friday, for allegedly misappropriating over Rs 7 crore by disbursing salaries to non-working individuals, issuing loans in the names of account holders without their consent, and manipulating deposit funds.
The bank came under scrutiny after the Cooperative Audit Department initiated an audit last year following complaints of irregularities.
The audit revealed serious discrepancies, including fraudulently listing retired individuals as active employees since 2021, allowing them to receive salaries, and adding co-operative society members’ names to documents without their knowledge.
EOW’s Ranipet officer S Karthikeyan told TNIE that the audit uncovered a misappropriation of Rs 7.83 crore through fraudulent loans and deposit manipulations.
The suspects, secretary S Shankar (58) and clerk D Bharthi (52) of the Tenkadpantangal City Co-operative Society, were dismissed.
After the audit, society president Suwetha filed a complaint with EOW Vellore, leading to an FIR and the suspects’ arrest. They were remanded to Vellore Central Jail on Friday.