Y’nagar Central Cooperative Bank CEO quits

Shiv Kumar Sharma

Yamunanagar, December 19

The Chief Executive Officer (CEO) of The Yamunanagar Central Cooperative Bank Limited has resigned after his name cropped up in a loan scam.

In his resignation letter addressed to the bank chairman, CEO Lokesh Datt said, “I wish to resign from the services of the Yamunanagar Central Cooperative Bank Limited as Chief Executive Officer due to reasons personal to me.” General Manager Hari Mohan Godara said Datt’s resignation had been accepted.

A loan scam was unearthed at two branches of the Yamunanagar Central Cooperative Bank Limited. In contravention of norms, the bank’s Jathlana village branch sanctioned loans worth Rs 2.86 crore to 21 firms in 2013-14, while the Sandhali village branch issued Rs 65 lakh loans to five firms.

The Rs 3.51 crore loan scam came to light after two teams of senior officers from HARCO Bank and the office of the Registrar of Cooperative Societies’ verified the accounts of both branches.

The verification brought out irregularities in sanctioning and advancing cash credit limits. It was found that fake documents were prepared to avail credit facility from the two branches and none of the 26 firms existed.

The report said the CEO sanctioned the cash credit limits showing the GM on official tour, whereas he was not on tour that day.

A meeting of the bank’s board of directors chaired by chairman Kehar Singh was called on Thursday to discuss the loan scam and to initiate action against the officers involved. The CEO is learnt to have tendered his resignation before the meeting started, yesterday. The directors discussed his resignation in the meeting and accepted it.

Godara said an explanation call would be first given to Lokesh Dutt and then he would be chargsheeted to initiate action against him. Junior accountant Arvind Sharma has been suspended and senior accountants Puran Chand and Krishan Kumar chargesheeted in the case, he said.