Police register misappropriation case against 14 others; State Government orders a CID enquiry and appoints an administrator
Police register misappropriation case against 14 others; State Government orders a CID enquiry and appoints an administrator
Rajya Sabha Deputy Chairman and founder of Amanath Co-operative bank, K Rahman Khan and his son-in-law have been accused of cheating and misappropriation to the tune of Rs 12 crore. CEO of the bank, Shahar Banu, has filed a complaint at Commercial Street police station on Wednesday alleging that Khan had released Rs 17 crore from the bank, to city based PHR Builders against Rs five crore, which was mentioned in the MOU for the construction of a building situated in Shivaji Nagar.
u00a0
Dire Straits: The CEO of a bank has alleged that Rahman Khan had
released Rs 17 crore from the bank, to city based PHR Builders against
Rs 5 crore shown on paper, out of which Rs 1.2 crore was remitted to
his son-in-law's account. File pic
Banu in her complaint (no.24/11) alleged that Khan had released Rs 12 crore in excess of the amount on paper, out of which Rs 1.5 crore has been remitted back to Khan's son-in-law's accounts. Assistant commissioner of Police BB Ashok Kumar said, "A case of cheating and misappropriation has been registered against Khan and 14 others accused in the case and we have initiated investigations. The accused include Khan, his wife, son-in-law and Prestige builders Irfan Razak and his brother."
The story so far
It may be recalled that the Amanath Co-operative bank, which released its balance sheet a few months ago had accused Khan of misappropriating over Rs 300 crore from the bank. In its balance sheet, the bank officials have released the financial transaction of Khan and others up to March 31, 2008 accusing them of defaulting on the loan amount up to Rs 300 crore. Khan was one among many directors and prominent leaders of the community who have reaped benefits illegally.
Khan, as chairman of the bank has allegedly allowed misappropriation of funds over Rs 225 crore during his tenure. Rs 75 crore has been misappropriated during the tenure of Zia-ul-Sharief, a prominent city builder.
The bank has initiated proceedings against Khan and others accused to recover the amount and a case has been registered at Commercial street police station.
Considering the magnitude of the case, the state government has ordered a CID enquiry and appointed an administrator. In 2003, a case was registered at Commercial Street police station regarding misappropriation of funds from the bank. At this juncture, the state government stepped in and ordered a CID inquiry, following which an administrator was appointed. The bank's former manager and a few others were arrested.
The CID inquiry pointed out the involvement of several bigwigs in the misappropriation of funds. The bank has managed to recover Rs 47 crore from the defaulters in the last three years. The bank has posted a profit of Rs 4.04 crore during 2008-2009.
ADVERTISEMENT
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
