Coop. Dept. to auction assets of ‘corrupt’ officials

In a move to check misappropriation of funds in district credit cooperative banks in the State, the Cooperation Department has decided to evaluate the assets and liabilities of 21 DCC banks and auction properties of officials and directors if found to be siphoning of funds.

Minister S.T. Somashekar reviewed the functioning of DCC banks and said banks would be given rankings based on their performance, and would be evaluated either by NABARD or a private agency.

With many cases of misuse of funds being reported in DCC banks, he directed officials of the department to appoint officers for auctioning of properties of directors/administrators involved in corruption. He also instructed a probe into the ₹92-crore scam in DCC Bank, Kalaburagi. It was alleged that the management committee had siphoned funds by sanctioning loans to relatives and friends. Sources in the department said ₹62.72 crore had been misappropriated in DCC Bank, Shivamogga, during 2004-13. Among 13 directors of the DCC Bank, eight of them allegedly involved in the scam and officials have been questioned on steps taken to recover the loss.

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Printable version | Jul 12, 2020 1:37:13 PM | https://www.thehindu.com/news/national/karnataka/coop-dept-to-auction-assets-of-corrupt-officials/article31726180.ece

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