Former CEO dismissed from service for defrauding bank

A senior official who is the main accused in defrauding a co-operative bank has been dismissed from service, bank sources said.
The then Chief Executive Officer of the Akola Urban Co-operative Bank Ltd O T Rathi, who is also the main accused allegedly involved in defrauding the bank to the tune of Rs 70 crore was dismissed from service since December 24 on the basis on an enquiry report, bank sources said here today.
Earlier, he was suspended from service, since an enquiry against him was pending, sources said.
He was reported absconding since the first offence involving a fraud of Rs 4 crore was registered against him on June 4.

A high court bench at Nagpur also declined to grant him anticipatory bail recently.
Surprisingly, the two others accused gave an undertaking that they would repay a loan of Rs 3 crore to the bank, but they made a volte face and failed to repay the loan.

Seventeen other complaints involving Rs 64 crore were also registered recently against the main accused O T Rathi.
However, the Kotwali police failed to nab these culprits since the first offence was registered six months ago in June.
The fraud was detected after 11 years after it took place in 2002.
Surprisingly, the then board of directors were kept in dark about the irregularity since the accounts were managed by the bank's then CEO O T Rathi, sources said.