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August 15, 2001
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Cops file case against Krushi Co-op Bank directors

Syed Amin Jafri in Hyderabad

The Hyderabad police on Wednesday afternoon registered a case of cheating against the chairman, directors and management of the beleaguered Krushi Co-operative Urban Bank Limited.

The case was booked under sections 406 and 420 of the Indian Penal Code at around 12.30 pm at the Mahankali Police Station in Secunderabad. Besides the chairman, vice-chairman, directors, the other Bank officials, including the Branch Manager P S Murthy, have been listed as accused.

The police action reportedly follows instructions from Andhra Pradesh Chief Minister N Chandrababu Naidu who returned to Hyderabad only on Tuesday night after a brief vacation in Kerala.

This is also a sequel to the RBI directive to the Registrar of Cooperative Societies, Andhra Pradesh, on Tuesday to supercede the board of directors of Krushi Bank and blacklist the chairman and directors, besides appointing an administrator to manage the affairs of the bank and decide on its liquidation or amalgamation with another cooperative urban bank.

The Mahankali police SHO said that the case was registered on a complaint from as many as 400 depositors of the bank, which operates through a lone branch in Ranigunj area in Secunderabad.

The depositors had put into fixed deposits in the bank amounts ranging between a few thousand rupees to as much as Rs 2 million to Rs 2.5 million, lured by the promise of very high interest rates made by the bank's management.

"The matter is under investigation and no arrests have been made so far. All the 10 directors of the Bank, including its chairman and vice-chairman, are absconding. Only the branch manager was available. We will interrogate him," an official at Mahankali police station told

Krushi Bank depositors heave a sigh of relief
Secunderabad co-operative bank gives depositors a scare
Krushi Co-op Bank may have asset/liability mismatch: Reuters
No case against Krushi Co-op Bank, say cops

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