Bengaluru: With irregularities and misappropriation of funds in several DCC (District Central Co-operative) Banks coming to the fore, Co-operation Minister S.T. Somashekar on Tuesday directed officials to undertake grading of the banks by independent private agencies or NABARD.

He was speaking at a progress review meeting with top officials of the Department during which the functioning and problems of DCC Banks and Apex Banks were discussed.

Stressing on the need for a singular review of all DCC Banks in the State, Somashekar said it is important to know the financial standing of every bank and its current status. 

Pointing out that the time has come for grading banks depending upon their functioning and financial standing, he said that it was equally important to know the agricultural lending and recovery procedures in detail in respect of every bank. 

Maintaining that a report along with supporting data is key for understanding the financial position of DCC Banks, he said that such reports will also help in unearthing any financial irregularities and scams.

Underlining the need for taking stringent action against those involved in misappropriation of funds, the Minister instructed the officials to empower officers to impound properties of all those indicted in misappropriation of funds and other irregularities in Banks.

Emphasising on the need for periodic audit of all Co-operative Institutions including VSSN (Vyavasaya Seva Sahakara Niyamitha) and Primary Agricultural Credit Co-operative Societies, he said that vigilance squads will be formed to maintain transparency in their functioning.

Somashekar was apprised of the alleged Rs.92 crore scam in Kalaburagi DCC Bank, following which the Minister asked the officials to conduct an investigation and submit a report. The Minister also ordered superseding of the DCC Bank Board of Directors and appointment of Kalaburagi Deputy Commissioner as the Administrative Officer.

Later, the Minister reviewed the progress of MCDCC (Mysore and Chamarajanagar District Co-operative Central) and Mandya DCC Banks.

Co-operation Department Principal Secretary Nagalambika Devi, Registrar Prasanna Kumar, Apex Bank officials and other Department staff were present.