Show cause notice issued u/s 59 of the APCS Act 1964 RC.NO. 207/2020-D Dt. 17-03-2020 Sub: CUB-Irregularities find out in the Kuppam Co op. Town Bank Itd., Kuppam during verification of cash balance as on 13-03-2020 and 17-03-2020. Issue show cause notice to the cashiers and CEO I/C of the Bank explanation called for -Reg Ref:- 1. Lr Rc.No.01/CUB dated 09.03.2020 of the SDLCO, Palamaner along with deposition of CEO i/c and Cashier of the Kuppam Coop Town Bank Ltd., Kuppam. 2.Show cause notice Rc. No.207/2020-D dated 13.03.2020 of the DLCO, Madanapalle issued to the Cfo i/c of the Kuppam Coop Town Bank Ltd. 3.Cash balance verification on 17-03-2020 of the SDLCO, Palamaner on 17- 03- 2020 along with depositions of CEO ic ,Cashier and staff of the Bank. Where as in the reference 1" cited the SDLCO, Palamaner has verified the gold loan pockets and find out the deficit of 30 Bags of gold worth of Rs.38,44,435/- and noticed that cash book and other books of accounts were not generated and updated. The same was reported to the DLCO Madanapalle. Accordingly issued notice to the CEO I/c of the Bank vide reference 2™ cited calling explanation to close the gold loans and remit the worth of the gold loan Rs.38,44,435/- duly submitted the cash book, general ledger and receipt payments. But no reply was received so far. Whereas The SDLCO cash arrived deficit of Rs, 4683958/- as on 16.03.2020 (i.e.as per cash book Rs, 7481849/- and as per physical verification Rs, 2797891/-) in the presence of the PIC/Chairperson and cashier and DLCO Madanapalle on 17-03-2020 which is serious in nature. wey ‘The CEO and the cashier are the joint custodian_of the-cash and every day they should account for and closed the cash book and coin war register but as seen from the books and accounts of the bank the CEO as well as the cashier of the bank have d to account for the same from 27-05-2019 to 13-03-2020 and also produced new and created coin war register in the place of regular cion war register to the auditor and PIC of the bank on 06-09-2019 to verify the cash balance without produced the cash book abstract and said that the system is error and not generated the cash book daily. Scanned with CamScanner‘The PIC has taken action to adopt new software to generate the cash book but the CEO of the bank has not produced any information to migrate the software to the new software individuals from November 2019 to till date due to avoid on find out misappropriation of cash balance involved the staff by the authorities, Finally the PAC has updated the old software and generated the cash book, GLs and receipt and payments as on 13-03-2020 and traced out the misappropriation of cash balance of RS/-46,83,958/- ,it seems that cashier and CEO of the bank are collided and misappropriated the public funds of the bank and also cheated the authorities for nonproduction of cash book and original coin war Register. In view of above circumstances and committed serious irregularities Sri V.S.V Naveenbabu CEO I/C Sri N.G.Kirankumar and Sri D. Kamalkumar worked as cashier of the bank are hereby called to explain as to why action should not be initiated to suspend from duties of bank and why action should not be taken to recover the deficit cash balance of RS/- 46,83,958/- for the misappropriated the cash balance as on 16-03-2020 jointly and severely from them duly initiate civil and criminal action against them their explanation should reach to the undersigned 3 (three days) from the date of receipt of with this notice otherwise it will be conformed that they have not offered any explanation and take necessary civil and criminal action duly suspended from the services of the bank and initiated disciplinary action based on the material evidences. \Vead DivisiGta? Coop Officer, Madanapalle. TO 1, Sri V.S.V Naveenbabu CEO i/c of the Kuppam Coop Town Bank Ltd., Kuppam. 2. Sri N.G.Kirankuma, Clerk cum Cashier, the Kuppam Coop Town Bank Ltd., 3, Sri D, Kamalkumar, Clerk cum Cashier the Kuppam Coop Town Bank Ltd.,. Copy to the PIC/Chairman the Kuppam Coop Town Bank Ltd. Kuppam for necessary action Copy to the SDLCO, Palamaner fer necessary action Copy submitted to the DCO Chittoor for favour of information eer Scanned with CamScanner