Co-op bank fraud probe intensifies

• Employee takes Rs 2-cr loan, pledging ‘fake’ gold
  
• DCCB Chief Executive warns of stern action

Eluru: Officials have expedited the inquiry into the misdeed of an employee, G Srinivasa Rao, of Chagallu cooperative central bank who had availed a loan of Rs 2 crore after allegedly pledging ‘fake’ gold.

The officials feel that it is impossible to resort to fraud and secure loan without the knowledge of the bank manager. They said once the employee, who was absconding, was caught the facts of the case would be known.

The West Godavari District Cooperative Central Bank CEO told The Hans India that stern action would be taken against those involved in the fraud and that there would no compromise even if there was political pressure.

Srinivasa rao, who worked as appraiser, had persuaded some of his close associates, who are farmers, to secure the loan in their name using his own gold. He allegedly secured loans over a period of five years in the ‘benami’ names of over 30 farmers.

He took care, in collusion with some bank staffers, to prevent the racket from getting exposed during annual audit. Srinivasa Rao had been paying interest since 2009. His fraud was exposed after the transfer of the branch manager and the present manager Hanumantha Rao taking over the post.

The accused vanished from the town overnight along with family members. The farmers were stunned to receive bank notices, even though they did not avail themselves of the loan. Gold bangles and ‘mangala sutram’ are among the ornaments pledged to the bank, which have been identified by officials.