Minister for Cooperation Laxman Savadi on Thursday said that the Cooperation Department has filed a criminal case against Rajya Sabha Deputy Chairman K. Rahman Khan for his alleged involvement in misuse of funds worth Rs 102.02 crore from a city-based cooperative bank.
Addressing presspersons here, Mr. Savadi that the case has been filed at the Commercial Street police station on Wednesday against Mr. Khan for misuse of funds during his presidentship of Amanath Cooperative Bank.
The alleged misuse of the funds took place during 1996 and the case was registered on Wednesday against Mr. Khan along with eleven others, he said. The Minister said that funds were released for various purposes illegally with Rs. 62 crore lent to eight account holders without security, besides “benami” loans worth Rs. 23 crore.
He would also send a report to the Centre for appropriate action as he is Deputy Chairman of the Rajya Sabha.
A few days ago, Janata Party president Subramanian Swamy had demanded the resignation of Mr. Khan for his alleged involvement in a bank fraud.
Mr. Khan was indicted for writing off loans extended by Amanath Cooperative Bank Ltd., Bangalore, when he was its president.