Irregularities alleged in the Muslim Co-operative Bank

Irregularities alleged in the Muslim Co-operative Bank

Submitted by alvin on Wed, 2016-05-25 20:35 Mysuru: Alleging irregularities in issuing loan, members of The Muslim Cooperative Bank have demanded the joint registrar for District Co-operative Banks to conduct a thorough investigation against Ahmed Salim Ahmed, chief of board of directors for Muslim Co-operative Bank.Addressing mediapersons here on Wednesday, Alhaj Shafiulla Baig, a resident of Lashkar Mohalla and also a member of Muslim Co-operative bank alleged that loans were issued in favour of family members violating the bank norms. He alleged that the board of directors comprised 12 members, of which eight were issued loan for their family members, violating the norms.According to cooperative bank norms, loans should not be issued to family members of board directors as it is a serious violation of co-opeartive bank norms, he added.Showing documents, he said, between, 2008 and 2016, the Muslim Cooperative Bank issued loan of about Rs 2.5 crores to the family members directors.This was brought to the notice of RBI which has imposed a penalty of Rs one lakh on the bank on May 3. A case in this regard has also been lodged with Lokayukta, he added. However, he urged the district joint registrar, who is the concerned authoritarian, to take action against the directors and dissolve the board of directors.Abdul Aziz, the member of bank also present during press meet.