The Khammam three town police have booked former chairman of the District Cooperative Central Bank Muvva Vijay Babu and the then Board of Directors on charges of misappropriating bank funds to the tune of ₹7.37 crore during their tenure.
Cases under Sections 403, 406, 409 and 420 r/w Section 34 of the IPC were registered against Vijay Babu and 21 others on Monday night following a complaint filed by DCCB CEO Veerababu, sources said.The CEO lodged a written complaint with the police after the DCCB general body meeting reportedly passed a resolution on Monday to proceed against those responsible for the major fraud during the previous managing committee's tenure as per law.
The meeting discussed the findings of an inquiry report submitted by top rung officials, who had probed the allegations of financial irregularities against the Board of Directors of the previous managing committee by some aggrieved farmers, sources added.
Serious allegations of organising expensive study tours, doling out costly gifts and setting up a hospital in the name of a trust on the pretext of serving farmers in flagrant violation of the bank regulations and the RBI norms were made by the aggrieved farmers.
