13 held for alleged loan fraud

Thirteen persons were arrested by the Crime Branch of Odisha police today in connection with an alleged loan fraud in Dhenkanal Urban Co-operative Bank.
On the basis of audit reports, 13 persons including bank's former President, Secretary and two members of loan sub-committee have been arrested in the first phase, said Special DG, Crime Branch, BK Sharma.
Nine of the arrested were loan takers who had availed loans but have not yet repaid, he said.
During investigation, it came to light that some officials of the bank had hatched a conspiracy and sanctioned loans to some people through fake documents. In some cases, loans were given without security. Loans were also given to relatives of bank officials, Sharma said.

Some more people are suspected to be involved in the case and investigation is in progress, he said.
The arrest was made after crime branch sleuths thoroughly interrogated the former President of the bank, the Secretary and others, police said.
It was alleged that financial irregularities to the tune of Rs 11 crore took place in the bank between 1993 and 2001.
The bank was closed in 2008.