By Bizodisha Bureau, Bhubaneswar, June 7, 2017 : The Economic Offences Wing (EOW) of the Crime Branch will conduct a probe into fraud in sanctioning of loan worth over Rs 29 crore by Odisha State Cooperative Bank [OSCB], Rourkela Branch.

The investigation follows direction of state cooperation minister Surjya Narayan Patro on Wednesday to EOW.

“Since these loans were disbursed without keeping proper security, we are facing difficulties in recovering them. This has come to fore after the audit. Since they have done this illegal work we have asked the Economic Offences Wing (EOW) of the Crime Branch to investigate,” Patro told media persons.

Incidentally, the loan fraud amounting to Rs 29.57 crore at the Rourkela branch of the OSCB was detected during a special audit of the period 2005-2015.

Meanwhile, the Cooperation Department has written to the Registrar Cooperative Societies to complete proceedings against the accused employees of the Bank within two months and take necessary steps for attachment of their properties.

Earlier, it had also issued several letters to the managing director of OSCB to look into the lapses in loan disbursement, but in vain.

The audit has detected the fraud during the incumbency of three branch managers.

As per the special audit report, fraud to the tune of Rs 28, 89, 00,000 has been alone committed during the incumbency of branch manager Raghunath Sahu.

The audit has brought to fore large scale irregularities in disbursement of loans to 1,495 persons from the branch.

The loanees were allegedly sanctioned loans without proper collateral security and guarantors by the branch.