The Hindu : Mother Theresa bank chairman, held

Online edition of India's National Newspaper
Thursday, Oct 10, 2002

Southern States

Southern States - Andhra Pradesh-Hyderabad

Mother Theresa bank chairman, held

By Our Staff Reporter

HYDERABAD Oct. 9. The Chairman of the Mother Theresa Bank, T. Charles, and his wife, Arpana Charles, were on Wednesday arrested by the Narayanguda police, which earlier registered a case under sections 406 and 420 of the Indian Penal Code.

A CCS team, which visited the bank premises on Wednesday afternoon, seized relevant files and documents from the bank. Investigations revealed that the bank had Rs. 3.5 crores as deposits and Rs. 3.9 crores as loans and advances as on Wednesday.

According to a press release issued by the Additional Commissioner of Police (Crimes and Special Investigation Team), M. Alagar, deposits in the bank include those by the Secretariat Employees Co-operative Credit Society (Rs. 15 lakhs), AG Office Employees Associations (Rs. 25 lakhs), Bank of India Employees Association (Rs. 20 lakhs) and Trinity Co-operative Bank (Rs. 25 lakhs).

When contacted, the Deputy Commissioner of Police (Detective Department), K. Narasimha Rao, said the bank had issued several loans in the names of relatives and friends, including an auditor who evaluated properties. It was also found that the value of properties mortgaged with the bank were highly exaggerated. The auditor had a cash credit limit of Rs. 25 lakhs and on his name, the present outstanding amount in the bank was Rs. 32 lakhs.

Many of the loan documents were said to have been `created'. The addresses of loanees on several documents were found to be fictitious. Several more loan documents did not even contain addresses and photographs of loanees, Mr. Rao said.

In many of the files the addresses of borrowers, the purpose of loan and the loan appraisal reports were not available. Several companies, which borrowed money from the bank, had not filed any relevant papers about the business they were transacting. It was found that prima facie, most of the loans and advances were bogus, through which the public deposits had been siphoned off. The CCS team is investigating into the role of the other directors of the banks and others connected with it.

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