In a four-decade-old case, a local court in Moodbidri has sentenced a former secretary and a former president of a cooperative society on finding them guilty of creating 127 loan applications in fictitious names and getting ₹ 16.27 lakh loan sanctioned from the South Canara District Central Cooperative Bank in 1979.
The sentence was against Dharanendra Kumar and Arvind Kumar, who were the secretary and president of the Shirthady Service Cooperative Society Ltd., Shirthady, respectively, pertaining to the fraud reported between May 8, 1978 and December 10, 1979.
As per the charge-sheet filed by the Criminal Investigation Department, Dharanendra Kumar and Arvind Kumar created 127 loan applications in the name of the dead and other persons and sent them to SCDCC Bank with a request to sanction loans.
The SCDCC Bank sanctioned ₹ 16,38,250. The two withdrew ₹ 16,27,800 from the SCDCC Bank’s Karkala branch where the society had its account and misappropriated the funds without disbursing the amount to anybody. They were charged with writing false accounts and suppressing and destroying evidence.
