Guru Raghavendra Sahakara Bank
Bengaluru: The ex-CEO of a cooperative bank, which was being probed for alleged financial fraud, was found dead in his car here, police said on Tuesday. Police suspect that Vasudeva Maiya may have committed suicide by consuming poison but they hastened to add that the exact cause death would be known only after detailed investigation.
The 70-year-old was found dead in his car which was parked by the roadside near Subramanyapura on Monday night, they said. The Anti Corruption Bureau recently raided the office and residence of Maiya and a few other executives of the Guru Raghavendra Sahakara Bank in connection with the alleged fraud.
The cooperative bank’s alleged irregularities came to light in January this year when the Reserve Bank of India stopped all its businesses and imposed restrictions on withdrawal by its customers. Following the restrictions, scores of its customers thronged the bank, which was reminiscent of the plight of the depositors in the scam-tainted PMC Bank in Mumbai.
The Bengaluru South BJP MP Tejasvi Surya recently appeared in the Karnataka High Court on behalf of the depositors, who are fighting to recover their money through legal battle. Subsequently, the ACB has reportedly speeded up its investigation into the alleged irregularities.
On June 18, Anti-Corruption Bureau (ACB) raided five of his locations in Bengaluru over alleged financial irregularities in the bank.
ACB said deposits amounting to ₹1,400 crore have been misappropriated in the bank, by violating the Reserve Bank of India rules.
A few officials of the bank have created artificial deposits and lent up to ₹150 crore to some fictitious customers.
On 10 January, RBI had imposed restrictions on the bank and gave direction to recover bad debts to the tune of ₹600 crore.
The central bank had also in January 2020 capped the withdrawal limit to ₹35,000 per account holder irrespective of their deposit amount for six months, which was enhanced to ₹1 lakh last month.
The bank’s head office is in Basavanagudi, and branches at Kanakapura Road, Poorna Prajna Layout, Kengeri, Raja Rajeshwari Nagar, Vidyaranyapura, BTM Layout and Rajainagar in Bengaluru.