An unauthorized person allegedly took huge amount of loans from the State Bank of India Employees Mutually Aided Cooperative Credit Society using fake deposit bonds.
This came to light on Saturday after an investigation launched by the district cooperative officials.
After a complaint lodged by the society‚Äôs members, District Cooperative Officer D Rajeswara Rao ordered an investigation by audit officials, who had already submitted their report confirming massive irregularities ever since the society was converted into a MACS society in 2009.
Though Rajeshwara Rao said the process for recovering the misappropriated funds had already been initiated, it was too early to say how much money was involved.
The Hindu reported that the scam would amount to around Rs 7 crore, including the irregularities regarding fake bonds as well as diversion and misappropriation of funds in various activities of the society.
It was reported that a meeting of the society board would be held on November 6 where the issues would be put before the members.
However, several employees had alleged that the irregularities and use of fake bonds took place because of a single employee of the society, who is now absconding.
It was also reported that the person was not an SBI employee but joined the society because of his relationship to a former Mayor of Nellore city.