Misappropriation of funds by the board of governors of Pen Urban Cooperative Bank in Raigarh district of Maharashtra has sparked a petition in the Bombay High Court.
The petition has made allegations that the people at the helm have used the funds of the bank to buy illegal properties for themselves. According to the petition, the properties involved are all benami.
Hearing the petition, the court has stopped the owners of the illegal properties from selling or creating third party rights until the matter is disposed of by the court.
It is worth noting that the RBI had thought of appointing a liquidator but the petitioners opposed liquidation on the ground that the move would greatly harm the interests of the small investors. The petitioners are insistent on the bank being reorganized and revived.
According to the petition filed in the court, a huge amount running into several hundred crore of rupees has been embezzled and this amount be recovered from the scamsters soon.
