Hyderabad:
The Andhra Pradesh police have decided to probe the
role allegedly played by the officials of the State Registrar
of Cooperative Societies (RCS) and the regional office
of the Reserve Bank of India (RBI) in not bringing to
light the serious defects in the functioning of Vasavi
Bank. Th city-based urban cooperative bank has run into
rough weather of late.
These
officials may face legal action and be penalised with
imprisonment ranging up to 10 years in the lines of those
found guilty in the cases involving Charminar Bank and
Krushi Bank, two other city-based urban cooperative banks
that collapsed last year.
Additional
director general of police, crime investigation department
CID, M L Kumawat says the decision to probe the role of
RCS and RBI officials was taken following the seizure
of audit reports prepared by them long back which pointed
out serious defects in the functioning of the bank.
The
police will now probe as to whether the officials of the
RCS and the RBI had intentionally suppressed the defects
of the bank and did not alert the government on the seriousness
of the problem.
Kumawat
says CID officials have retrieved a document from the
bank recently in which the RBI had directed the bank management
sometime during October 2001 to recover the loans sanctioned
to the bank directors in violation of the prescribed limits.
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