An inquiry launched by the district cooperative officials has revealed the creation and use of fake deposit bonds by unauthorised persons to take huge loans from the State Bank of India Employees Mutually Aided Cooperative Credit Society, reports Hindu.
Sources said the scam would come to around Rs. 7 crore with irregularities taking place not only with regard to fake bonds but also with diversion and misappropriation of funds in various activities of the society.
Following a complaint lodged by the society’s members, District Cooperative Officer D. Rajeswara Rao had ordered a probe by the audit officials who had already submitted their report.
It was confirmed that massive irregularities started ever since the society was converted into a MACS society in 2009.