Berhampur Cooperative Urban Bank under scanner for loan fraud

Berhampur: The director of Berhampur Cooperative Urban Bank has filed a complaint with the Cooperation Minister SN Patro and the Deputy Registrar alleging that loans have been disbursed by the bank on basis of forged documents.

As per the charges made by the director, P. Bheemudu, loans have been sanctioned either without proper documents or land papers which are not valid. Though Bheemudu had apprised the matter to the bank's president after an audit, no action was taken.

However, a probe was ordered after Bheemudu informed the Cooperation Minister and the Deputy Registrar about the irregularities in the loan disbursal.

He alleged one T. Prasad Rao, son of T.Tariniamma of Berhampur, was given loan by the cooperative bank without having received the legal heir certificate from him. Similarly, one Basanti Sahu of Rangunibandha was sanctioned loan on basis of forged documents.

“I had informed the president of the bank about the loan irregularities but no action was taken. Later I met the Cooperation Minister and Deputy Registrar, after which a probe was ordered. The Berhampur Division Cooperative Society Deputy Registrar has been entrusted with the probe and asked to submit a report to the government in 15 days,” said Bheemudu.

Meanwhile, President of the Cooperative Bank Duryodhana Swain has denied the allegations stating that only after approval from the sub registrar and the bank legal adviser, the loans were sanctioned by the bank.

“There is no way for a loan fraud in the bank. It is the old habit of Bheemudu to write false petition. His allegations are totally baseless,” said Swain.

Comments from the Deputy registrar could not be obtained on this matter.