Ex-CEO of crisis-hit bank in Karnataka booked

PTI, Feb 10, 2020, 3:05 PM IST

Bengaluru: A case of cheating and forgery has been registered against the former chief executive officer of crisis-hit Guru Raghavendra Sahakara Bank Limited here, weeks after RBI cap on withdrawal limit triggered panic among depositors.

According to police, the case has been registered based on a complaint by the present CEO A Santhosh Kumar against his predecessor Manur Vasudava Maiya.

The bank is in the middle of a crisis following huge non-performing assets and Reserve Bank of India imposed restrictions from collecting deposits, lending loans and making investments.

The apex bank had also last month capped the withdrawal limit to Rs 35,000.

Kumar stated in his complaint that between 2012 and 2018, Maiya had allegedly lent money beyond his jurisdiction to various customers.

“We want stringent action against Maiya for conspiring and betraying the bank,” he stated in his complaint. Restrictions imposed on depositors from withdrawing money last month rattled account holders.

They had stormed the bank to get clarity on their investments.

Later, the bank authorities said they were working to sort out the issue.