Dhenkanal: The Crime Branch of Odisha police today arrested 13 persons including the banks' former president and secretary among others after a marathon interrogation in connection with the loan fraud in Dhenkanal Urban Co-operative Bank.
“In the first phase on the basis of audit reports and individual reports we have arrested total 13 persons including bank’s former president, secretary, two members of loan sub-committee and 9 loanees who had taken loans but didn’t repay till date,” said Special ADG, Crime Branch, BK Sharma.
According to reports, sleuths of the investigating agency this morning questioned the former president of the bank, the secretary and some other persons who didn’t repay their loans.
“I was in charge of Dhenkanal Urban Co-operative Bank twice since 1993-94 till 2011. It’s a 50-year old bank and I took charge in its 43rd year when the bank was struggling to pay customers. I joined taking it as a challenge to revive it. The allegations being levelled are absolutely false and politically motivated,” said the bank’s former president Sukanta Mishra.
“First of all I am grateful to thestate government for arresting the persons who were involved in the fraud but the government is yet to take any steps to return depositors’ money,” said Seshadhara Pani, a duped depositor.
It was alleged that financial irregularities to the tune of a whopping Rs 11 crore was made during 1993 and 2011.
The bank, which was functioning at Jagannath Road in Dhenkanal town, was closed in 2008.
The bank became bankrupt and was subsequently liquidated on February 17, 2010 by the registrar of Cooperative Societies following an order of the Reserve Bank of India (RBI).