According to media reports, the Kempegowda Nagar police in Bangalore took five persons into custody including the director of the Kuruhinashetty Souharda Credit Cooperative Society for allegedly swindling its customers and indulging in irregularities of Rs 90 crore.
The accused were arrested based on the two cases filed in August this year. Police say the accused had been misappropriating funds since the inception of the society in 2011.
The method used by the accused was to give loans to their friends and close relatives without due diligence.
Misappropriation of funds has also been reported from the Shushruthi Co-operative Bank and Sri Guru Raghavendra Sahakara Bank in the past.