Denying allegations over misappropriation of funds, the President of Board of Directors of The Muslim Cooperative Bank (MCB), Mysuru, Mir Umayun said that we the Board Members have not indulged in any misappropriation of funds at any of the four branches of the bank in Mysuru district. “All the Board Directors are ready to resign if the allegations are proved,” he challenged.
Addressing media persons here on Wednesday, Mir Umayun said the baseless allegations made by Shafiulla Baig, who is one of members of MCB, is misleading people. We have issued loans for applicants in accordance with the norms of Cooperative Bank Act.
Justifying loan sanction process, Umayun clarified that “The norm of Cooperative Bank Act clearly states that sanctioning loan for blood relatives is restricted. We the Board of Directors have not sanctioned loan for blood relatives, but we have accepted loan applications by wives of respective members. It is not in violation of Cooperative Bank Act, as the beneficiaries have not taken loans claiming to be wives of the respective members of BoD. The applicants have submitted documents of their respective father and mother, and not mentioned their husband’s name in the loan proposal. Hence, we have no such provisions in the norms to reject their loan applications,the sanctioned loan amount of Rs 2.5 crore has been cleared by all the eight members. We are ready to face any kind enquiry in this regard,” he claimed.
Umayun said, the Muslim Cooperative Bank has 8,000 account holders and the bank has sanctioned Rs 47 crore as loans. “Currently the bank is having Rs 75 crore deposits and annual turnover is Rs 96 crore.”
Baig who unsuccessfully contested five previous elections for BoD in MCB and this is the main reason behind making false allegations, said Umayun and added that “A defamation case against Baig will be filed.”