Delhi cooperative bank under scanner of Assembly panels over fraudulent loans to laddoos

By: |
New Delhi | Published: October 4, 2017 10:20:38 AM

Two committees in the Delhi Assembly are probing 'rampant fraud' and 'irregularities' against a Delhi cooperative bank

bank fraud, delhi bank fraud, Delhi cooperative bank, delhi assembly, Delhi Nagrik Sehkari Bank Ltd, delhi newsTwo committees in the Delhi Assembly are probing ‘rampant fraud’ and ‘irregularities’ against a Delhi cooperative bank. (IE image)

Two committees in the Delhi Assembly are probing ‘rampant fraud’ and ‘irregularities’ against a Delhi cooperative bank, according to Indian Express report. The allegations like fraudulent loans issued through forged documents and lakhs spent on laddoos during Diwali were levelled against Delhi Nagrik Sehkari Bank Ltd (DNSBL), the report said. The committees are likely to submit a report soon.

The bank said it is the ‘fastest growing cooperative bank in North India’. It had 14 branches. The bank has over 66,000 shareholders, over 1.5 lakh customers. It als has deposits of over Rs 506 crore in 2015. It has been learnt that the bank falls under the purview of the Registrar of Cooperative Societies (RCS), Delhi government, according to IE report. Earlier, a 2015 inquiry led by P C Jain, special secretary, General Administrative Department, had concluded that the bank “indulged in unnecessary profligacy and extravagance while making various conspicuous expenditure”.

DNSBL CEO Upender Garg, however, said, “There are multiple investigations going on. Already, the RCS has directed a fine against all 15 directors of the bank. Non-performing assets are estimated to be Rs 30 crore. We are trying to recover as much of this as possible. A separate committee has been formed to assess the losses to the bank; that report is awaited,” according to Indian Express report.

The allegations had come to light in 2012, when Anil Kumar Gaur, a stakeholder and member of the bank, filed a petition in the Delhi High Court, alleging irregularities in DNSBL. Since then, multiple inquiries by the Reserve Bank of India and RCS confirmed that norms were violated, it is learnt.

The matter was raised in the Assembly in January 2017, when AAP MLA Akhilesh Pati Tripathi asked about it in the House. It was referred to the Questions and Reference Committee, chaired by deputy speaker Rakhi Birla. In August, a complaint by Vijay Dev, also a stakeholder and member of the bank, was received by the Committee on Petitions in the Assembly, chaired by Saurabh Bhardwaj.Since then, multiple inquiries by the Reserve Bank of India and RCS confirmed that norms were violated, it is learnt.

The matter was raised in the Assembly in January 2017, when AAP MLA Akhilesh Pati Tripathi asked about it in the House. It was referred to the Questions and Reference Committee, chaired by deputy speaker Rakhi Birla. In August, a complaint by Vijay Dev, also a stakeholder and member of the bank, was received by the Committee on Petitions in the Assembly, chaired by Saurabh Bhardwaj.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1PIL on political funding: SC issues notices to government, Election Commission
2Floods in central India have tripled since 1950, says study
3Vice Chancellor going on indefinite leave a victory for us, say BHU students