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.