Nation Crime 30 Aug 2021 DCCB to file crimina ...

DCCB to file criminal case against 22 who took loans on non-existent assets

DECCAN CHRONICLE.
Published Aug 30, 2021, 11:55 pm IST
Updated Aug 30, 2021, 11:55 pm IST
The accused obtained loans of Rs 10-Rs 20 lakh by showing open plots in and around Khammam town, even as these did not belong to them
Surprisingly, no case has been filed so far. DCCB chief executive officer Veerababu said the bank would lodge complaints against the errant at police stations if they did not pay back the loan amounts immediately. — Representational image/PTI
 Surprisingly, no case has been filed so far. DCCB chief executive officer Veerababu said the bank would lodge complaints against the errant at police stations if they did not pay back the loan amounts immediately. — Representational image/PTI

Khammam: The District Central Cooperative Bank has decided to lodge complaints against 22 persons who took loans by producing false documents – a serious financial crime.

They obtained loans of Rs 10 lakh to Rs 20 lakh by showing open plots in and around Khammam town, even as these did not belong to them. The officials started an inquiry after it was found they stopped paying the EMIs after four or five instalments.

 

All these loans were obtained between December 2017 and 2019 on various names. Officials, who conducted a field enquiry, found that some of the documents that they produced to get the loans are not valid. No such land existed.

Questions are raised as to how the officials did not verify matters before granting the loan, and about a likely collusion. Corruption is massive in the cooperative banking sector as is also the case with public sector banks.

Officials now say some of those who produced the plot documents had double registrations. The plots were sold to somebody and loans were taken on the basis of old documents, which were no more valid. DCCB used to give loans to various activities including business, industrial units and other purposes.

 

Notably, the DCCB is caught with the problem of steadily increasing bad debts, or non-performing assets (NPA), which was of the order of Rs 105 crore in 2020-21. It is “struggling” to bring it down to Rs 60 crore by 2021-22, officials claimed.

About 14 persons took loans from DCCB by producing documents false documents, it has emerged.

The DCCB had a reputation in the banking sector and hence people preferred to deposit their money there in the form of fixed deposits. Its fixed deposits touched to Rs 1075 crore by now and it plans to collect another Rs 350 crore in fixed deposits in 2021-22.

 

Surprisingly, no case has been filed so far. DCCB chief executive officer Veerababu said the bank would lodge complaints against the errant at police stations if they did not pay back the loan amounts immediately. “We have to safeguard the money of the public and we will do whatever is best for the DCCB,” he said.

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Location: India, Telangana, Khammam




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