10 ex-governing body members of co-op bank arrested for fraud

Ten former governing body members and officials of a cooperative bank were arrested here today for alleged misappropriation of funds to the tune of around Rs 10 crore, police said.
A police team, led by DSP PP Sadanandan, arrested the accused in connection with the alleged fraud committed during 2006-2011 in Valapattanam Cooperative Bank.
"The accused were arrested based on a case registered in this regard two years ago. The investigation is still on," Sadanandan said.
According to the complaint, the accused had allegedly committed fraud to the tune of Rs 10 crore by taking loans showing an "exaggerated" value for a marshy land and also by pledging gold already hypothecated by customers in other banks.

Police also registered another case today against the same persons for taking loans from the cooperative bank by forging fake documents in the name of a woman without her knowledge.