Indian Express report says the Crime Branch in Odisha has begun investigation into the financial crisis that caused liquidation of Bhubaneswar Urban Cooperative Bank.
Following the state govt.’s failure to merge the beleaguered bank with any other cooperative bank, the RBI had prevented the bank carrying out any financial transactions.
The Bank has been in crisis since 2001 due to indiscriminate lending and improper financial transactions. The bank’s crisis has caused the depositors to lose their savings.
The bank owed about Rs 28 crore to its depositors. The bank’s customer base was about 14,000.
The bank started operating in 1988. Sources say all efforts so far to merge the bank with any other cooperative bank have come to naught.