Criminal cases against coop bank directors

The Cooperation department has slapped criminal cases against chief executive officers and the board of directors of cooperatives banks in Mandya, Maddur and Hubli for the alleged misuse of funds meant for farm debt waiver scheme of the Union government.

Disclosing this in the Legislative Assembly, Cooperation Minister H S Mahadeva Prasad said these town cooperative banks were alleged to have misused funds to the tune of Rs 8.4 crore. Directions have been issued to initiate action against all those involved in the fraud.

These banks are: Simsha Sahakara Bank Ltd (Maddur), and Sri Guru Siddeshwara Cooperative Bank Ltd (Hubli) and Lokapavani Mahila Sahakari Bank (Mandya).
The action has been taken following a Comptroller and Auditor General (CAG) report finding serious lapses in the implementation of the Rs 52,000-crore farm debt waiver scheme, the minister said.

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