Mangaluru, May 18: Allegations of financial irregularities have surfaced against the Polali Vyavasaya Seva Sahakari Bank, a cooperative institution based in coastal Karnataka. A formal complaint has been filed by Bantwal resident Pradeep Pai, urging the Union Cooperation Ministry, Reserve Bank of India (RBI), and the Central Bureau of Investigation (CBI) to initiate a thorough probe.
The complaint claims that the cooperative bank, which was originally set up to support farmers, has been issuing loans against fake documents and without adequate collateral. It also alleges that memberships were granted illegally to individuals residing outside the bank’s operational jurisdiction, leading to large-scale loan defaults and financial losses.
Instances have reportedly come to light where loans were sanctioned based on fabricated General Power of Attorney (GPA) documents. In several such cases, borrowers are said to have defaulted on loans worth crores and subsequently settled them under suspicious circumstances—raising concerns of possible money laundering.
As per banking norms, any such dubious financial activity should be reported to regulatory bodies such as the RBI and the Income Tax Department. However, the complaint accuses the bank officials of failing to report these transactions, thereby violating compliance protocols.
Irregularities dating back to 2019 have been cited in the complaint, which also criticizes the Cooperative Department for inaction and alleged negligence. The complainant has called for a high-level investigation to uncover the full extent of the scam.