Cooperative Bank Anantnag heading to a disaster, as 21 branches throw 11 crore rupees down the drain

CEO orders enquiry, many ‘fraud loans, NPAs’ under scanner

Srinagar, Apr 14 (RNA): In what could lead the Central Cooperative bank Anantnag to a huge ‘disaster’, nearly 21 branches have thrown crores of rupees down the drain by virtue of ‘deliberate NPA’ despite clear cut directions to avoid the same. The loot- as one may call it-   of such a huge amount of public money has been done despite a standing order to maintain ‘zero tolerance’ for NPAs from April 2018 and the recovery of earlier NPAs shall be recovered from the staff involved. Regional News Agency (RNA) has learnt from sources in the cash strapped bank that 11. 34 crore rupees have been ‘ looted’  from 21 branches by way of NPA’s in the previous financial year possibly in connivance with the bank officials.

The official documents in possession with RNA reveal that even fresh loan advances from April 2018 have also turned into NPAs whereas, there are apprehensions of ‘ fraud loaning’ in nearly three branches including ‘ Shangus, Hakhura and Bidder also.

As per the documents, Branch Srigufwara is topping the list with NPAs amounting to 2.80 crore, followed by Yaripora 1.32 crore, Bidder with Rs. 1,31 crore,  Khanbal 1.29 crores, Murran Adda 79 lakhs, Rajpora 76 lakhs, D.H Pora 57 lakhs, Litter 40 lakhs, and branch Shopian with 38 lakhs of NPA.

“ Whereas the undersigned is in receipt of a strange report from the AEM Administration which prima facie, if proved, can lead the bank to disaster. Whereas it was earlier directed that there should be Zero tolerance for the fresh NPA’s w.e,f 1st April 2018 and it was also decided to recover the NPA’s that may have caused during the period shall be recovered from the staff dealing with. Whereas, 21 branches have been reported to have exhibited fresh NPA’s to the extent of 11.34 crores which is a matter of concern.”  reads the order vide Number No. 01.A/21/002-004 dated 02-04-2019 Issued by Chief Executive Officer of the bank, Muzaffer Sultan, a copy of which lies with the RNA.

It further reads, “Whereas astonishingly fresh loans advanced from 01/04/2018 have also turned NPA’s. Whereas loans advanced for installing solar lights or purchasing Tiller Machines could be fictitious to the apprehensions of the officer under report.”

The CEO has now decided to initiate an enquiry in order to dig out the reasons behind such a huge financial loss and has asked the enquiry officer to report back by 20th of this month.

“In view of the circumstances that has lead (led) the AEM Administration to file a preliminary report, I.H.Deen is hereby appointed as an enquiry officer to enquire thoroughly into the loans portfolio of the aforementioned branches on each case to case basis and ensure that his final report comes before 20th of April 2019 along with the action taken report on the recovery of NPA’s most particularly in the branches listed above.” reads the order further. MD could not reached for his comments despite repeated attempts by RNA as his cell was on ‘ diverted mode.’ (RNA)