New Indian Express reports following crime branch inquiry loan dodgers have begun repaying their dues to Dhenkanal Urban Cooperative Bank in Odisha.
Earlier the crime branch had taken several persons into custody including ex-president of the bank’s management for flouting bank guidelines.
Sources say the bank was set up in 1950 and was functioning well till February 2010. There is one main allegation that the bank management disbursed loans without proper check on loanees’ creditworthiness, say sources.
After an audit, State Registrar of Cooperative Societies liquidated the bank on recommendation of Reserve Bank of India in February 2010.
The Urban Cooperative Bank returned about Rs six crore to as many as 3300 customers having deposits below Rs one lakh. Pune based Cosmos Bank once toyed with the idea of taking the bank in its fold.
Reports say the bank has to recover over Rs 15 crore from customers.