Police investigation has shown misappropriation of funds and serious irregularities in sanction of loans in Care Mutually Aided Cooperative Credit Society in Hyderabad.
A director of the society colluded with the board of management and indulged in irregular transactions.
He had sanctioned a loan of Rs. 1.5 crore to PV Nagamalleshwara Rao one of the directors of the cooperative. One other director had even utilized Rs.3.5 crore for his personal use without informing the members of the society, the police claimed.
Police have already arrested 4 persons and 10 others are likely to be arrested. The cooperative society has nearly 400 members and a deposited principal amount of Rs. 7 crore.