Some of the officers and directors of cooperative banks in Karnataka are in for trouble after CAG Report found large-scale misuse of fund by them.
Karnataka cooperation minister H.S.Mahadeva Prasad has said in the state assembly action is being taken against chief executive officers and the board of directors of the cooperative banks in Mandya, Hubli and Maddur for their alleged complicity in misuse of huge funds in farm debt waiver scheme of the central government.
The action is being initiated following a CAG report detecting lapses in the rupees half a lakh crore scheme.
Sources say, the misuse of funds has the proportion of a scandal and its revelation shows the extent of corruption rampant in the cooperative banking sector in the state.