Bank claims chief adviser flouted loan norms; FIR filed

Bengaluru: Sri Gururaghavendra Sahakara Bank Niyamitha (SGRSBN), a co-operative bank in Basavanagudi, has filed a complaint against its chief adviser for disbursing loans worth several crores of rupees in violation of norms. It hit the headlines after Reserve Bank of India (RBI) imposed a cap on withdrawals of its customers.
SGRSBN chief executive officer (CEO) Santosh Kumar A filed the complaint against Vasudev Maiya, chief advisor, at Banaswadi police station, accusing him of lending loans by violating bank norms. According to the complaint, RBI during its auditing said loans for five people were given in violation of norms, which led to the crisis. Banaswadi police registered an FIR on Friday.
Maiya, who’s been working with the bank since 2000, was elevated as CEO in 2012 and retired in 2018. He continued to work as chief adviser. Sources said the case was registered on RBI’s directive. On January 10, RBI had capped withdrawals from SGRSBN at Rs 35,000 for six months over non-performing assets (NPAs).
The complaint said, “Maiya has caused a loss of several crores of rupees to the bank and is in syndicate with a few borrowers like Jaswanth Reddy, Ashok Reddy, Ranjith Reddy, M/s Megatex and Naveen DP/Geetha Naveen.”
Santosh added in the complaint: “As per the recent inspection by RBI, it was found that Maiya illegally sanctioned and disbursed loans to several people to cheat the bank and its depositors. He misused his position in the bank with the criminal intention of siphoning off several crores of rupees of depositors’ money. Maiya committed breach of trust and routed the funds fraudulently by dodging the bank accounts.”
69 defaulters with Rs 372cr liabilities
According to sources, the bank’s NPAs stood at Rs 600 crore. There are 69 major defaulters and their liabilities to the bank total Rs 372 crore; the bank has 100% collaterals against these NPAs. The RBI audit of about Rs 10 crore revealed violation of norms, resulting in the complaint.
Banaswadi police have registered a case under sections of Karnataka Protection of Interest Depositors Exorbitant Act and IPC. Santosh chose not to comment as police probe is under way.