Odisha seeks action in co-operative bank fraud case

BHUBANESWAR: The state government on Tuesday asked the managing director of Odisha State Co-operative Bank (OSCB) to initiate action against those responsible for misappropriation of Rs 17.34 crore from the Rourkela Branch of Sundergarh District Central Co-operative Bank (DCCB).

"The authorities of the DCCB have been asked to take action against the bank officials involved in the fraud. Besides, the auditor general of cooperative societies has been requested to probe into the allegation of fraud," said Odisha's cooperation minister B K Arukh.

While Rs 7.22 crore loan was granted by an ex-secretary of the bank, the State Cooperation Department has named nine other employees of the bank for embezzling Rs 10.12 crore.

The incident of fraud came to the light during a special audit of the bank activities from 2004-05 to 2011-12 and 01-04-2012 to 02-04-2012. Sundergarh DCCB's former secretary Babaji Charan Prusty had allegedly sanctioned non-agricultural loans amounting to Rs 7.22 crore beyond his capacity, the audit report said.

The audit report further held six other employees responsible for misappropriating the amount. "Bank's ex-branch manger S C Rath, ex-accountant N N Nayak and B Barik are suspected to be responsible for swindling Rs 10.12 crore," Arukh said.

In May this year, Odisha State Cooperative Bank's former president Jagneswar was arrested by vigilance sleuths for allegedly sanctioning loans to the tune of Rs 37 crore to Bijayananda Cooperative Sugar Mills in Balangir. Jagneswar was also the president of the cooperative sugar mill.