K Venugopal, vice chairman of Krushi Co-Operative Urban Bank, facing a run on its deposits following severe asset-liability mismanagement, on Wednesday surrendered before the Crime Investigation Department (CID). The police was still clueless about the whereabouts of the bank chairman A Venkateshwar Rao and other directors at large after the bank faced a run on its deposits amid allegations of asset-liability mismatch, an official spokesman said.
Meanwhile the state government has announced a reward of Rs 5 lakh to those giving information leading to arrest of Rao and other directors of the bank, sources said. Andhra Pradesh government on August 18 ordered confiscation of properties of chairman and directors of the bank and on August 20 ordered a CID probe into the financial scandal involving the bank.
All the district collectors and superintendents of police have been instructed not to register any transactions concerning the properties, both movable and immovable, of the bank's chairman, its board of directors and their relatives and friends. It is believed that as many as 10,912 depositors have put in over Rs 31.68 crore in the bank.
Bureau Report