CID Crime arrests CEO, MD in Gujarat bank fraud case

The CID (Crime) arrested two more people in connection with the financial fraud of around Rs70 crores of Gujarat Industrial Co-Operative Bank (GICB). Two complaints were filed in this connection, one at Surat and the other at Ahmedabad. The police have already arrested around 50 people in this connection.

Talking to DNA, DIG, CID-Crime, RV Jotangia said that the two people were arrested at around 12 pm on Saturday. BR Deewan -- the CEO of GICB and Vijah Shah -- the managing director of the bank, were arrested by the CID.

Jotangia further said, "This is an old FIR file in Surat and Ahmedabad and we have already arrested many more people in this case. A complaint of cheating and fraud has been filed against them".

A criminal complaint has been filed by the administrator of the bank against the ex-Board of Directors for their acts of omission and commission leading to huge losses to the bank, the statement said.

The RBI issued several show cause notices to the bank asking it as to why the license granted to it on September 29, 1999 to conduct banking business should not be cancelled. The bank submitted its reply which was not found satisfactory, after which the RBI cancelled its banking license.