Financial Daily from THE HINDU group of publications
Saturday, May 18, 2002
Financial Daily from THE HINDU group of publications Saturday, May 18, 2002 |
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Money & Banking
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Co-operatives AP: Dhana Bank depositors seek Govt help Our Bureau
ELURU (West Godavari), May 17 THE depositors of the Dhana Urban Co-operative Bank here, which is facing a grave crisis, have appealed to the State Government, the State Co-operative Department and the Reserve Bank of India to take all possible steps to protect their interests and to enact and enforce stringent laws in future to prevent frauds in co-operative banks. At a meeting of the depositors here on Friday, the association of depositors said the series of frauds in urban co-operative banks in the State, beginning with Krushi Bank in the State capital, had eroded the confidence of the public and the Government should act fast to save depositors. Transactions of the Dhana Bank are under scrutiny by the State Co-operative Department and the RBI, following complaints lodged by the depositors with the police this week. The West Godavari district police are questioning the bank Chairman, Mr Sagar, the Vice-Chairman and some of the directors to unearth the facts. The demand drafts issued by the bank were not honoured by HDFC Bank and this led the depositors earlier this week to storm the bank premises and lodge complaints with the police. According to Mr Kripananda Tripathi Ujela, the District Police Superintendent, there was some evidence prima facie indicating "irregular diversion of funds" to two or three companies floated by the Bank Chairman. It is learnt that the co-operative department officials and the RBI officials have, so far, detected irregularities relating to cash credit, demand loans and overdraft facility. The Dhana Bank had overdraft facility with HDFC Bank to an extent of Rs 50 lakh, but had overdrawn the amount and transferred it to one of the companies floated by the Chairman.
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