A scam has inflicted a loss of Rs. 3.18 crore on the Prakasam district central cooperative bank in Andhra Pradesh.
The fraudsters include an appraiser, loanees and seven bank workers. Imitation gold ornaments had been pledged to the bank for loans.
The bank has demanded a probe by the CBI in the case.
The scam came to light during the bank’s internal audit. Sources say while the bank has already suspended its seven erring employees it has asked the police authorities to arrest other offenders as well.