Hindustan Times reports ACB investigation found the bank president among 15 scamsters who defrauded Mahila urban cooperative bank of Bhilwara district in Rajasthan of Rs 50 crore.
The ACB has registered a case against 15 accused under section 13(1) (C) (D) — applicable if a public servant fraudulently converts property entrusted to him or under his control for own profit — and section 13(2) — misuse of office — of the Prevention of Corruption Act after finding the charges to be true.
Police say the allegation is that in connivance with the bank management, fraudulent loans worth Rs 50 crore were given to relatives and known people who were not financially capable to repay their loans.
Earlier, RBI had cancelled the license of Bhilwara Mahila Urban Co-operative Bank saying the bank does not have adequate capital and earning prospects.