Fraud plaint filed against Metro Bank chairman

An account holder of the Metro Co-operative Bank Ltd has filed a complaint of fraud against the bank chairman Kamalkishore Kapuria and other persons, accusing them of committing financial irregularities.

According to police sources, Tolaram Sharma, an account holder of Metro Bank, filed a complaint against Kapuria, and four other persons, a few days back.

Sharma alleged that Kapuria, in connivance with former bank chairman Dinesh Agrawal, opened bogus accounts in the bank.

Credit facilities were extended to these accounts, and the money used by the accused, Sharma said.

He also claimed that financial irregularities on the part of the accused were responsible for the collapse of Metro Bank. In view of Sharma's complaint, the court, on Tuesday, directed the Salabatpura police to lodge a complaint against Kapuria, Agrawal and two more persons, who include Kuldeep Mehta, the chairman of the city-based the Associate Co-operative Bank.

The Salabatpura police, which registered a case against the four accused, have begun investigations in the case.

Kapuria said, "I am out of Surat for some days and do not have any information about the complaint. Appropriate steps will be taken on my return," he said.

Metro Bank had stopped clearing operations on October 21. Bank officials claimed that higher loan advances, which stood at Rs. 16.18 crore as against total deposits of Rs. 14.83 crore, had resulted in the crisis at the bank.

The Reserve Bank of India clamped restrictions on the bank on October 22, thereby barring it from paying more than Rs 500 to any depositor.

Metro Bank officials claim that they have recovered approximately Rs 1 crore so far.

Bank officials have sought RBI's permission to double the withdrawal amount limit from the current limit of Rs 500.

Metro Bank officials have expressed confidence that the bank would be able to recover the loan advances, and arrange for the necessary liquidity in the coming months, which would enable it to resume normal banking operations.