Karnataka Minister for Cooperation S.T. Somashekar said those involved in violation of the prescribed norms at Shivamogga District Cooperative Central (SDCC) Bank would be punished, reports The Hindu.
The allegations are that loans have been on fake gold collateral. It is also said the govt had the information that the bank had also decided to give loans to loss-making sugar factories without assessing their financial position.
The minister said the govt might order a CIB probe into the financial transactions of the bank covering a period of 15 years.
In another report it has been said that the Karnataka dept of cooperation will evaluate the assets and liabilities of all the 21 DDC banks in the state to see if there have been irregular transactions.
Minister of cooperation S.T. Somashekar said these banks would be ranked on the basis of their performance. Meanwhile, the minister has ordered a probe into the Rs 92-crore scam in DCC Bank, Kalaburagi.
Sources say the cooperative department has detected a fraud of ?62.72 crore in DCC Bank, Shivamogga, during 2004-13.
Earlier, the Karnataka High Court ordered police to investigate misappropriation of deposits in Sri Guru Raghavendra Cooperative Bank, Basavanagudi. The court has passed the order on a PIL petition filed by K.R. Narasimha Murthy and three other depositors of the bank.
The petitioners have urged the court to issue directions to the concerned authorities to carry out a forensic audit of accounts and transactions of the bank by a committee of experts under the Banking Regulations Act.