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Raids were conducted at houses of those who had defrauded the bank by defaulting on loan payments. Huge loans had been availed in connivance with bank officials against fake records.
It may be recalled that the bank’s former chief executive officer Vasudev Maiya, who was booked under a forgery and cheating case committed suicide on July 7. Following this, the high court ordered a CID investigation into the scam.
Following huge non-performing assets at the bank, the Reserve Bank of India imposed restrictions from collecting deposits, lending loans and making investments.