2 arrested in Navodaya bank fraud in Nagpur

NAGPUR: The economic offence wing (EOW) of the crime branch has arrested two former managers of Navodaya Urban Cooperative Bank in the Rs 38 crore co-operative scam. The accused — Rajesh Bante and Rajesh Bogul — were produced before a court on Wednesday and sent to PCR up to June 24.
EOW had earlier booked former Congress MLA Ashok Dhawad and 16 directors of the bank on the basis of a complaint filed by the auditor of state department of cooperatives. The accused had allegedly duped investors by distributing bogus loans between 2010 and 2015.
The accused had also allegedly written off loans of customers by forging documents and providing them no objection certificates. Such customers were again provided loan by the bank. The fraud was busted after investors approached cops.
The cooperative bank had also gone into liquidation after its banking licence was cancelled six months ago.