A former manager and an officer of the Indian Overseas Bank and a secretary of an NGO have been arrested for allegedly defrauding the bank to the tune of Rs 6.14 crore in providing loan to SHG members, police said Thursday.
The officials, during the audit, found out that the loans had not been repaid, and learnt that the former manager and the officer of the bank had in collusion with the NGO secretary had committed the fraud in 2010-12, the police said.
Based on a complaint from the regional manager of the bank, a special police team investigated into the fraud and arrested the three, they said.
Further investigation was on, they added.
Disclaimer: No Business Standard Journalist was involved in creation of this content
