DC takes charge of scam-hit Shimoga DCC Bank

Shimoga Deputy Commissioner Vipul Bansal on Monday took charge as Administrative Officer of the Shimoga District Central Co-operative Bank following an order of the State government.

The government has kept the administrative board of the bank in abeyance as the Criminal Investigation Department (CID) is investigating the financial irregularities at the Shimoga city branch of the bank.

Bansal spoke to Deccan Herald over phone, “The main purpose of appointing the administrative officer is to stabilise financial transactions at the bank. Account holders had withdrawn their deposits after the financial irregularities came to light. The sudden withdrawals affected the bank’s functioning.

My appointment is aimed at instilling confidence in the customers. Importantly, the bank has not been superseded. The government issued an order in this regard on August 16. I hope it will soon lift the suspension.”

It may be recalled that financial irregularities to the tune of Rs 1.72 crore in the city branch had come to light on July 17 last after Nagabhushan, the general manager of the bank’s main branch, made a complaint to the police.

Investigation was first undertaken by a team of the District Crime Investigation Branch headed by Inspector Jairaj, and a total of 18 people, including the bank’s president R M Manjunath Gowda, the manager of the city branch, Shobha, and Nagabhushan, were arrested.

The government later handed over the case to the CID. A CID team headed by Superintendent of Police D C Rajappa is investigating the case.