The Economic Offences Wing of Odisha govt has arrested a former secretary of Bhubaneswar Urban Cooperative Bank and two branch managers for their alleged involvement in the Rs.18 crore loan scam, says New Indian Express.
The loans had been given with forged documents and the value of collaterals inflated to facilitate the process, a source said.
Sources say investigation is still in progress and more arrests could not be ruled out. The bank was doing well in the beginning but irregular transactions soon seriously affected its financial background.
According to audit reports, the bank has failed to recover Rs 35 crore, including Rs 18 crore as principal, from loanees.
