Bank CEO arrested for misuse of Rs 3.06 crore

HYDERABAD: Central Crime Station (CCS) investigators on Saturday arrested chief executive officer (CEO) of

Gokul Cooperative Urban Bank

, Monda Market, for misappropriation of Rs 3.06 crore belonging to eSeva of the information technology department. The

CCS

officials said

J Balaiah Yadav

, CEO of Gokul Cooperative Urban Bank, was arrested based on a complaint lodged by the commissioner of IT department alleging that

Balaiah

had violated the agreement and diverted money from the current account belonging to eSeva, a citizen-friendly payment gateway, for a different purpose.

The bank took a franchise of the payment facility, while the eSeva has a current account at the bank. During December 2015 and October 2016, Rs 9.13 crore was credited into the current account of eSeva at the cooperative bank and of that Rs 5.06 crore was transferred into the main pooling account through a cheque.

Recently, when another cheque was issued by the IT department to transfer the remaining amount, the cheque bounced. When the IT department officials verified, they came to know that without their knowledge, Balaiah had diverted money by giving loans to his alleged benamis,

gold

loans and others.

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