Rs 2.79 crore bank loan fraud in Vellore? Inquiry on

By Express News Service

VELLORE: Top officials of the Cooperation department are holding a probe into complaints of alleged loan fraud worth Rs 2.79 crore perpetrated in a cooperative bank in Gudiyatham in Vellore district. The inquiry was ordered recently after certain self help group (SHG) members had complained that they were issued notices to repay loan installments that they had not availed.

A preliminary inquiry held, had brought to light that there were defaults in repayments and subsequently, a top officer of the department was directed to hold a detailed probe.

'During the preliminary inquiry, it was found that there were repayment defaults in certain loan accounts. Subsequently, a detailed inquiry is ordered," K Jayam, MD of Vellore District Central Cooperative Bank said.

He noted that the inquiry is being held under section 81 of TN Cooperative Societies Act. It was alleged that a woman manager had swindled a huge amount by sanctioning loans in the name of SHG team leaders. Sources said she had sanctioned loans worth `2.79 crore during her one year tenure.

Apart from auditing the loans sanctioned during her tenure, the previous ones are also being audited, the sources noted. The MD stated that appropriate action will be taken against those who committed irregularities. Meanwhile, Minister for Cooperation 'Sellur' K Raju, who was on an official visit to Vellore, promised criminal action against the perpetrator. "Stringent action will be taken. Our CM had directed to take criminal action against anyone who indulges in financial fraud in cooperative societies or banks," he said.