Saturday, November 29, 2008

14 sent to judicial custody in connection with bank fraud - - 25 Nov 08

PUNE: Fourteen people, including the founder and former Chairman of the city based Survarna Sahakari Bank, charged with a fraud to the tune of Rs 437 crore were today remanded to judicial custody by a Magisterial Court here.

The court rejected the prosecution's plea for further extension of police custody of Dynaneshwar Agashe, his wife Rekha and son Ashutosh along with other accused, most of them directors of the cooperative bank, who were arrested by the economic wing of Pune police on November 22.

The 14 people have been accused of violating RBI norms and advancing huge amounts of loans selectively without proper guarantees.

The big chunk of middle class depositors of the bank had received a jolt when the scam came to light in 2006 and it was put under moratorium with the appointment of an administrator.

The aggrieved depositors, who have now been permitted to withdraw limited amount from their accounts, have formed an action committee to safeguard their interests and are demanding that the crisis ridden bank be merged with a nationalised bank.

The RBI is reportedly studying viability of a proposal put forward by the Indian Overseas Bank in this regard.

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