24 directors of Ghaziabad bank booked for embezzling around Rs 100 crore

Twenty-four directors of Ghaziabad’s now defunct Mahamedha Cooperative Bank have been booked for allegedly misappropriating around Rs 100 crore, according to an FIR lodged here. Devender Singh said properties of seven people who took hefty loans from the bank have been attached.

Twenty-four directors of Ghaziabad’s now defunct Mahamedha Cooperative Bank have been booked for allegedly misappropriating around Rs 100 crore, according to an FIR lodged here. The case was lodged following an audit by a company engaged by the Cooperative Department. The company in its report named the errant directors and officials. In a complaint to police, Cooperative Department Assistant Commissioner and Registrar Devendra Singh alleged the bank officials sanctioned loans to ineligible customers. He said Rs 99.85 crore was embezzled. Devender Singh said properties of seven people who took hefty loans from the bank have been attached. Properties of other borrowers will also be attached, he said. The case will be investigated by the cooperative cell of the UP police, SP (City) Abhishek Verma told PTI. One of the directors named in the FIR is already dead. The permission for running the bank was granted on February 27, 2001 by the Reserve Bank of India.

Its licence was cancelled in 2017 due to irregularities. Meanwhile, when asked to comment over the issue, UP Cooperative Affairs Minister said he does not know whether any fraud has taken place or not. When asked as to whether any scam was unearthed during an audit in Ghaziabad, Mukut Bihari said, "Audit was done, but whether there has been any scam, I do not know. Banks get their audit done." 

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