HYDERABAD: The Central Crime Station police here on Saturday arrested the chief executive officer of Gokul Cooperative Urban Bank on the charge of cheating eSeva run by the Information Technology department of the Telangana state government by way of misappropriating its funds.
Suspect J. Balaiah Yadav allegedly diverted more than Rs 3.06 crore through issue of loans for him and other office-bearers of the bank without proper security. The police is also investigating the role of the bank’s chairman Cheemala Jagadish Yadav in this process.
“They have taken loans in lakhs of rupees in their own names without offering any proper security and used the money for buying cars, gold etc., for themselves. As many as 12 people including directors and higher officials of the bank are suspected to have misused the funds,” said CCS Deputy Commissioner of Police Avinash Monaty.
“We have arrested the CEO as he is responsible for the entire operation. A probe is on and more arrests will follow,” an investigation official said.
Loans given on benami names
In February 2004, the bank had been given permission to establish the eSeva facility as a franchisee centre on a prepaid model. The ESD had opened a current account in Gokul Bank for transactions of eSeva money. “Over the years Rs 9,13,04,842 was credited to this account by citizens depositing money towards various government charges,” said a probe official.
The bank’s functionaries started loaning money from this amount to themselves, using benami names. “Later when the ESD submitted its cheques the bank could clear cheques for only Rs 5,66,80,166. It didn’t clear the rest of the amount — Rs 3,06,24,676 — and failed to repay the amount for a year,” said the officer.
Following a complaint from the government, the police started a probe and booked a case of cheating and breach of trust against the bank.
