Farm loan scam in Odisha: EOW arrests three

Koraput: The Economic Offences Wing (EOW) of Crime Branch on Monday arrested three persons for their alleged involvement in financial irregularities in Kalimela LAMPCS of Koraput Central Cooperative (KCC) Bank.

The three accused have been identified as Ramesh Chandra Parmanik, ex-Branch Manager, Kishore Chandra Bisoi, ex-Accountant and Bhupendra Narayan Mohanty, ex-Cashier of the bank's MV79 Branch.

Special DG (Crime Branch) BK Sharma informed about the arrest today via his twitter handle. He also tweeted that financial irregularities to the tune of Rs 3.69 crore was found during an audit.

EOW of Odisha Crime Branch arrests 3 main accused involved in misappropriation in Kalimela LAMPCS of Koraput Central Cooperative Bank

— Bijay Kumar Sharma (@BijayKumarShar7) June 12, 2017

"Further investigation to identify other accused in the scam continues," tweeted Sharma.

Further investigation continues to identify other accused, if any and to trace the misappropriated public money

— Bijay Kumar Sharma (@BijayKumarShar7) June 12, 2017

The decision to audit the irregular and illegal loan sanctions came against the backdrop of a scam unearthed by OTV where it was found that the officials of the cooperative banks in four districts of the State, Nabarangpur, Malkangiri, Rayagada and Koraput, operating under KCC Bank had looted crores by carrying out fake transactions.

As per reports, in the name of 859 farmers of Kalimela, Sikhapali and Padia LAMPCS, the bank officials have allegedly looted crores under farmers’ loan and crop insurance schemes.

Govt in Cooperation department had requested EOW to take up the investigation

— Bijay Kumar Sharma (@BijayKumarShar7) June 12, 2017

Earlier, Cooperation Minister Surya Narayan Patro had issued suspension order of a few officers of KCC and ordered an investigation by EOW.