For forgery and misappropriation
They made false entries in records without disbursing loans
Manager disbursed jewel loans against fake gold jewellery
PUDUCHERRY: The Vigilance and Anti Corruption Department has arrested Lokanathan, Manager of Primary Agriculture Cooperative Bank at Ariankuppam, for having allegedly forged documents and misappropriated funds. The department also registered cases against four other employees of the bank in connection with the case.
Superintendent of Police (Vigilance and Anti Corruption Department) S. Ramaraj told The Hindu that Lokanathan, a resident of Villianur, in connivance with the four employees, had made false entries in records without actually disbursing loans.
Lokanathan, in collusion with certain customers, had also disbursed jewel loans against fake gold jewellery, Mr. Ramaraj said.
Following the detection of the fraud during an audit report from 2000 to 2004, the administrator of the bank, Kumaran, lodged a complaint with the department.
Preliminary inquiry revealed that the five employees together had misappropriated funds to the tune of Rs. 19.33 lakh. Lokanathan alone had misappropriated Rs. 13.86 lakh, Mr. Ramaraj said.
Though Lokanathan was arrested and remanded to 15 days judicial custody, the four others managed to escape. Cases were registered under Section 409 (criminal breach of trust by public servant), 420 (cheating and dishonestly inducing delivery of property) read with 34 (acts done by several persons in furtherance of common intention), 468 (forgery for purpose of cheating), 471 (using as genuine a forged document) and 477 (A) (falsification of accounts) of the Indian Penal Code.
A special team has been formed and sent to different parts of the country to arrest other accused, Mr. Ramaraj said.