Guru Raghavendra Co-op Bank fraud: CID raids loan defaulters

Team Udayavani, Aug 4, 2020, 2:42 PM IST

Bengaluru: CID sleuths on Tuesday, August 4 conducted raids at 15 spots, including Halasur, Rajajinagar and Sadashivanagar in connection with Rs 1400 crore fraud at Sri Guru Raghavendra Co-operative Bank.

Raids were conducted at houses of those who had defrauded the bank by defaulting on loan payments. Huge loans had been availed in connivance with bank officials against fake records.

It may be recalled that the bank’s former chief executive officer Vasudev Maiya, who was booked under a forgery and cheating case committed suicide on July 7. Following this, the high court ordered a CID investigation into the scam.

Following huge non-performing assets at the bank, the Reserve Bank of India imposed restrictions from collecting deposits, lending loans and making investments.