New India Cooperative Bank embezzlement probe: ARC chief called to record statement

Mumbai, Apr 7 (PTI) Mumbai police's Economic Offences Wing (EOW) has called the managing director and CEO of an asset reconstruction company (ARC) to record his statement within a week in connection with the probe into the Rs 122 crore embezzlement case at New India Cooperative Bank, an official said on Monday.

During the probe, it was found that many loans that had been classified as Non Performing Assets (NPA) were sold to this ARC, he said.

"In some cases, the bank received lesser amount from the company after selling the properties that were mortgaged as part of the loans. In one case, the loan amount was Rs 30 crore, but the bank got just Rs 2-3 crore from the ARC," the official explained.

"To know the reasons behind receiving less amounts, the EOW has decided to call senior officials of Omkara ARC for inquiry. The MD and CEO has been called this week, though no specific date has been fixed," the official said. PTI DC BNM

Source: PTI