Following a meeting with account holders, MVS Rami Reddy, Principal Secretary, Cooperative Department, Uttar Pradesh has issued an order for probing irregularities in Secretariat Cooperative Bank, media reports say.
He has directed the concerned officials to recover the entire amount from the culprits. Besides, he has formed a probe committee comprising of cooperative officials. This committee is expected to address the grievances of account holders.
It is to be noted that a massive scam broke in the Secretariat Cooperative Bank in the tenure of the previous board. The board had disbursed loans arbitrarily. Though the bank was in the red the management disbursed dividend to the shareholders. This led to RBI imposing a penalty of Rs 1.5 crore on the bank.
The bank is under the RBI Directions. In 2018, when this came to the notice of the Chief Minister he had ordered action.