Rs 45.5 lakh fraud detected at Mayurbhanj central co-op bank

Baripada: The audit of Mayurbhanj Central Co-operative Bank has exposed a major loan scam perpetrated by the officials of its Baripada branch. As per the audit report, the branch showed undue favours to various loan defaulters of the bank through one-time settlement (OTS) mechanism.

Though loan amounting over Rs 45.5 lakh of eight persons, who had availed it from the Baripada branch, were settled through the OTS scheme, the audit found no such records.

Assistant Auditor General, Cooperative Societies, Mayurbhanj circle, Baripada has recommended removal of the bank’s president Rajkishore Acharya in connection with the irregularities.

Earlier on April 11, Deputy Registrar of Cooperative Societies, Baripada Division in a letter to the Chief Executive Officer (CEO) of the bank informed that Assistant Auditor General Cooperative Societies, Mayurbhanj circle, Baripada has drawn surcharge proceeding case against President Rajkishore Acharya, Ex-CEO Harish Chandra Das and Baripada branch manager PK Singhbabu. The three were held equally liable to the extent of Rs 45.5 lakh.

“The surcharge proceeding is drawn on the basis of Audit report of the MCC Bank Ltd for the year 2016-17 and special report on OTS scheme,” read the letter.

CEO of the bank Achyuta Nanda Patra said,”The Assistant Auditor General during audit of the OTS scheme of the year 2016-17 had found some irregularities. Subsequently, they initiated surcharge proceedings against bank’s president, the then CEO and manager of Baripada branch. The Deputy Registrar of Cooperative Societies, Baripada Division has sent a letter to me to serve discontinuance notice to the bank’s president.”

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