Bank manager held for Rs 2.5 crore fund misappropriation

An Indian Overseas Bank official along with 14 others have been arrested for alleged misappropriation of funds to the tune of Rs 2.5 crores, police said today.
The accused K Bhaskara Chary who served as the manager at Rampachodavaram Division of the IOB in East Godavari district from 2010-12 during which the embezzlement took place was arrested today, Rampachodavaram ASP Vijaya Rao said.
Chary was arrested along with the other bank officials and middlemen after a complaint was lodged by the incumbent manager Nageshwara Rao, who took charge two months ago, police said.
Rao had initially alerted the Bank Vigilance officials who found the allegations of misappropriation to be true.

According to the preliminary investigation, so far Rs 13.7 lakh out of the total Rs 2.5 crore was misused by the accused and the rest of the amount is being tracked, the police official said.
The probe further revealed that Chary along with others sanctioned various types of loans to unlettered tribals in the region after collecting some amount from them, police added.
It was also found that 10 out of the 19 tribals who had obtained loans from the bank are dead. The amounts were sanctioned on the basis of fake 'pattadar' (pass books) and xerox copies of other documents, Rao added.

Chary is presently posted with the Hyderabad branch of the bank.