Delhi co-op bank gives loans on forged documents, house panel hears case

Delhi Nagrik Sahkari Bank (DNSB), a cooperative bank registered with the Registrar of Cooperative Societies (RCS), provided loans to a large number of people on the basis of fake income tax returns and forged property papers and government identity cards. Chaired by Greater Kailash MLA Saurabh Bharadwaj, the House Petitions Committee also found that the bank, which has estimated deposits of about Rs600 crore, had non-performing assets (NPAs) of about 38% (more than Rs 225 crore).

The panel observed that at least four inquiry committees, including an internal probe and three independent auditors, one of whom was appointed by the RBI, found massive corruption in extending loans to various individuals and indicted chief executive officer Jitender Gupta for several irregularities during his previous tenure as senior manager of audit and purchase departments.

In accordance with the committee’s observation, taking cognisance of the probe panel reports, the RCS issued prosecution sanction against Gupta on September 24, which was stayed by the financial commissioner (FC) in ex-parte order.

Committee chairperson Saurabh Bharadwaj said, “The FC also stayed the RCS order to seize the bank’s financial powers. After taking permission from theReserve Bank of India to let the Delhi government take over the bank, the RCS also issued a notice to its management committee, but it was stayed by the FC.”