Srinagar, Sept. 4 -- According to the complaint, loans amounting to Rs.3.09 crore were sanctioned in 2014 to 127 members of MPCS Hatigam. While Rs.2.50 crore has been recovered, dues worth Rs.1.21 crore remain outstanding against 39 members of the society. Interestingly, the alleged defaulters insisted they had already repaid their loans directly to the society and even produced receipts to substantiate their claims.

A preliminary inquiry revealed glaring irregularities. Investigators found that certain bank officials, in connivance with members of the cooperative society, had processed fake loan cases in the names of non-existent individuals. The funds, officials said, were then misappropriated and siphoned off for personal use.

The Cr...