Now Reading: Congress MLC seeks SIT probe into Mahalaxmi Cooperative Bank fraud
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Congress MLC seeks SIT probe into Mahalaxmi Cooperative Bank fraud
Congress MLC B.K. Hariprasad on Wednesday demanded an SIT probe into alleged irregularities of over ₹25 crore at Mahalaxmi Cooperative Bank in Udupi district's Malpe. He told the Legislative Council that fake loan documents were created against customer accounts, and that the bank's chairman is a local BJP MLA.
Hariprasad also alleged that the bank manager's recent death by suicide may be a murder involving unknown persons, and called for an administrator to be appointed immediately. Higher Education Minister Basavaraj Rayareddy, replying for the Cooperation Minister, termed the case serious and said he would request the government to constitute an SIT for a thorough probe.
The demand comes amid concerns over depositor safety in cooperative banks, which fall under state regulation. No decision has been announced yet.
Indian Opinion Analysis
Congress and BJP governments in Karnataka have often used SITs for politically sensitive cases, but appointing one for a cooperative bank is less common. The Mahalaxmi Cooperative Bank operates under the Karnataka Cooperative Societies Act, which gives the Registrar of Cooperative Societies powers to supersede the board and appoint an administrator. If an SIT is formed, it will investigate both the loan fraud and the manager's death, the manager's suicide note or post-mortem report could be critical. The bank's depositors and shareholders, many of them small farmers and local traders, stand to lose their savings if the ₹25 crore gap is not recovered. The next hearing in the Legislative Council will indicate whether the government concedes to the SIT demand.
Source: thehindu.com
This story was synthesised by AI from the source linked above. Methodology and corrections.
