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Police get major leads in Krushi bank scam

The Crime Investigation Department, probing the financial scam in the Hyderabad-based Krushi Urban Co-operative Bank, has claimed to have obtained clues that might lead to a major breakthrough soon even as panicky depositors thronged branches of various other co-operative banks to withdraw their deposits.

"We have obtained a lot of clues and information regarding the top brass of KUCB including its chairman Venkateshwara Rao, who along with other bank directors are absconding ever since the scandal broke and there is likely to be a major headway in the on-going probe," police sources said.

Even as KUCB is mired in a financial scam leaving hundreds of middle-class investors in a quandary, depositors continued to make a beeline to other co-operative urban banks to withdraw their hard earned money, following apprehensions that they would go the same way as KUCB.

A large number of investors thronged the premises of Vasavi and Aryan co-operative urban banks as rumours were rife that the apex bank had declared these banks as 'weak'.

Meanwhile, the main opposition Congress on Tuesday urged the state government to take initiative and probe functioning of 'shaky' co-operative banks in the wake of a series of scandals rocking several Hyderabad-based co-operative banks.

As several middle class investors were hard hit, the government in consultation with RBI and registrar of co-operative society should do the needful and save innocent and gullible investors from clutches of unscrupulous bankers, party spokesman K Rosaiah told reporters.

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