The Hindu : Andhra Pradesh / Hyderabad News : CID probe into bank affairs sought

Online edition of India's National Newspaper
Wednesday, May 02, 2007
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Andhra Pradesh

Andhra Pradesh - Hyderabad

CID probe into bank affairs sought

Staff Reporter

Despite court orders, OTS scheme is being continued to benefit big borrowers, say depositors

HYDERABAD: The Prudential Cooperative Bank shareholders and depositors Welfare Association has appealed to the CID to look into the `misdeeds' of the bank.

Association general secretary Pattem Surya Prakasha Rao alleged in a press release that though the High Court suspended the One Time Settlement (OTS) scheme to benefit the big borrowers, it was still being continued.

Court directive

The High Court had also directed that any mortgaged documents should be released only on the permission and directions of the High Court vide Order No. 1976/2005, WA 1053 of 2005, he said.

Mr. Rao appealed to the CID to initiate action against those involved, including big borrowers, if mortgaged documents were released on the basis of One Time Settlement in violation of the court directive.

There were reports that temporary bank employees were releasing the mortgaged documents in connivance with the cooperative society employees by taking some remuneration, he alleged.

The big borrowers should repay the loan on the basis of contract rate for taking back their documents, Mr. Surya Prakasha Rao said.

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