The Kempegowda Nagar police on Tuesday arrested five persons, including the director of a co-operative society, for allegedly cheating its customers and committing irregularities to the tune of ₹90 crore.
Based on the two cases filed in August this year, the police arrested Ishwarappa B., 71, former vice-president and B.L. Srinivas, 64, former director of Kuruhinashetty Souharda Credit Co-operative Society along with others who had borrowed crores of rupees on loan, and cheated the customers to the tune of ₹90 crores.
Investigations by the police revealed that the directors and other members of the co-operative, have been committing the irregularities since the inception of the society in 2011.
The accused would grant loan to their friends and family members without following due diligence. Many people have taken loans many times on the same collateral surety in violation of norms.
The accused members of the co-operative bank have even entered into an agreement with the head of the chit fund illegally and granted him loan worth crores of rupees without following the procedure and incurred huge loss to the bank due to non repayment of loans.
The accused even refused to pay the deposits to their customers even after maturity of the deposit terms. When the customers protested, and filed a complaint, the accused resigned from their posts. The police are now on the lookout for the other accused involved in the large scale irregularities .
Along with the accused, the police also arrested BT Mohan, 75, chairman of Surabhi chit funds limited, from his residence in BTM Layout.
