Vellore Tamil Nadu: The Economic Offences Wing (EOW) has arrested two clerks from the Urban Co-operative Bank located near Walaja in Ranipet on Friday. They are accused of misappropriating over ₹7 crore by unlawfully disbursing salaries to individuals who were not employed, issuing loans in the names of account holders without their consent, and manipulating deposit funds.
Background of the Investigation
The bank came under scrutiny after the Cooperative Audit Department initiated an audit last year following several complaints regarding irregularities in its operations. This audit revealed alarming discrepancies, including the fraudulent listing of retired individuals as active employees since 2021, which allowed them to illegally receive salaries. Additionally, the names of co-operative society members were added to various documents without their knowledge or consent.
Findings of the Audit
According to S. Karthikeyan, an officer with the EOW in Ranipet, the audit revealed a total misappropriation of ₹7.83 crore through fraudulent loans and manipulation of deposit funds.
Details of the Arrest
The suspects arrested are S. Shankar, 58, the secretary, and D. Bharthi, 52, a clerk of the Tenkadpantangal City Co-operative Society. Following the findings of the audit, the society’s president, Suwetha, lodged a formal complaint with the EOW in Vellore. This complaint led to the filing of a First Information Report (FIR) and ultimately resulted in the arrests of the two clerks.
The accused were remanded to Vellore Central Jail on Friday, and further investigations are ongoing as authorities continue to examine the full extent of the fraud.
