Probe sought against financial irregularities in Muslim Cooperative Bank

The members of The Muslim Cooperative Bank urged the Joint Registrar and Deputy Registrar for District Co-op­erative Banks to conduct a probe into alleged irregu­larities in the bank with re­gard to loans sanctioned in violation of the co-operative bank norms.

Shafiulla Baig, a resident of Lashkar Mohalla and also member of Muslim Co-op­erative Bank alleged that the chief of board of directors for Muslim Co-operative Bank, Ahmed Salim Ahmed had misappropriated bank funds. Addressing media persons here on Wednesday, Baig said that the board of direc­tors which consists of 12 members, in which eight of their wives were issued loans.

According to cooper­ative bank norms, loans should not be issued to blood relatives or family members which are a seri­ous offence under co-oper­ative bank norms and such nepotism will ruin the core objective of co-operative banks, he added. Showing documents, Baig said be­tween 2008 and 2016, the Muslim Cooperative Bank issued Rs 2.5 crore loans to the bank directors’ families. “Such acts not only violate the norms, but ruin the ma­jor objective of co-operative bank concepts.”

“In this regard, the Re­serve Bank of India also served notice to the board of directors of the bank, im­posing Rs One lakh penalty on May 3. A case has also been lodged with Lokayukta and investigations are on to take further action.”

The District Joint Regis­trar for Cooperative Banks should dissolve the board of directors and appoint spe­cial administrative officer till a new board of directors are appointed, Baig said. Abdul Aziz, the member of bank was also present.

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