Inactive accounts to be closed by State Minorities Finance Corporation
Hyderabad: Andhra Pradesh State Minorities Finance Corporation Ltd (APSMFC) will ask the Criminal Investigation Department (CID) for the list of properties that were purchased by the accused in the scholarship scam case.
Corporation arrived to a conclusion from the board meeting that the properties in Hyderabad bought by the scamsters should be averted from selling and transferring as this is illegal.
The property scam in Hyderabad came into light in last October where CID found that the accused person bought 200 acres of land and also purchased a house. The price of land was fixed Rs 15 crore while it was Rs 5 crore for the latter. It was also discovered that a total amount of Rs 57 crore was drawn off. The CID seized FD receipts of Rs 14 crore. Moreover, a Vijaya bank employee was also caught in this case.
Thus for better management of funds and to prevent swindling of fixed deposits, the corporation decided to shut off its all inactive accounts and restricted its transactions to only State Bank of India, State Bank of Hyderabad and Andhra Bank.
MFC has opened different accounts for different schemes in nationalized banks which were not even closed on time. Recently corporation closed its 30 inactive accounts in Hyderabad after the announcement in the board meeting. It also directed officials to restrict the number of accounts to four.
Besides dealing with the salaries of employees, the corporation also deals with pre and post-matric scholarships and financial assistance schemes. The corporation uses the services of a private bank for operational expenditure and salaries.
The Corporation also decided to continue its transactions with Vijaya Bank for the current year till the scholarship disbursal scheme ends.
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Andhra Bank, Hyderabad, management of funds, property scam in hyderabad, State Bank of Hyderabad, State Bank of India, State Minorities Finance Corporation Ltd, Vijaya Bank
