Major irregularities in Rs 5 cr loan granted by Adimali cooperative bank come to light
Adimali: An investigation report of assistant registrar uncovered major irregularities in the cooperative bank here. It is reported that the bank committed fraud in the fund of Rs 5 crore granted by NABARD to help farmers who are struggling amid COVID-19 outbreak.
The bank authority under UDF illegally granted loan under the NABARD fund to relatives of the administrative committee members and employees in the bank.
As allegations were raised against the bank, the joint registrar was asked to carry out an inquiry and submit a report.
Adimali Assistant Registrar’ s report revealed that in the loan of Rs 5 cr, Rs. 2.33 cr was given on personal guarantee and Rs 2.61 cr was given as gold loans.
Major findings in the report:
As per the bank’ s rule, a loan from Rs 25,000 to Rs 1 lakh can be given on personal guarantee. Meanwhile, it was found that Adimali cooperative bank has given a loan up to Rs 2 lakh over the personal guarantee. This is against the order issued by the registrar.
For granting loans, the bank collected the original title deed of the property. But only copies of documents were received as surety to loan from some applicants.
At the same time, many loans were granted after receiving lease documents of the land. Other documents of the land were not attached with the application of the sanctioned loans.
In some files of the loan, handwritten documents and computer print were attached as surety of loan. As per the law, the lease contract should be registered. Hence, all these documents are invalid.
The bank sanctioned Rs 2 lakh after receiving the documents of a 10 cent land as surety. It was also found that members of the same family applied for multiple loans by pledging the same title deed.
11 administrative committee members of the bank and 15 employees have taken loans from the bank in the name of their kins. The registrar’ s report pointed out that the bank president has taken Rs 14 lakh under the name of his kins and vice president has taken a loan of Rs 4 lakh in the same way.