Bengaluru: The alleged multi-crore financial misappropriation case at the Mangalore Catholic Cooperative (MCC) Bank has taken an interesting new turn, with as many as 33 bank members writing to Chief Minister Siddaramaiah, Home Minister G. Parameshwara, Cooperation Minister Rajanna, the state Chief Secretary, the Registrar of Cooperative Societies, and others. The members have accused bank officials of harassing ordinary citizens under the pretext of loan recovery and urged the government to order a CBI inquiry. In the formal complaint dated January 23, they also called for the suspension of the bank’s board of directors and requested the appointment of an administrator to oversee the bank’s operations until the investigation is completed.
Allegations of financial misappropriation running into crores of rupees have surfaced over the past few years at the prestigious MCC Bank, which serves the coastal districts. Despite complaints being filed, the bank’s Chairman, Anil Kumar Lobo, and his associates have allegedly used their influence to evade legal scrutiny. Raising these concerns through a collective complaint, members have pointed out that those who pursue strong legal action against these irregularities often face mysterious deaths, challenging public safety and social order.
A recent incident involving the suicide of Manohar Periera, a disabled resident of Ulaibettu Cutinho Padav in Mangaluru and a member of MCC Bank, has brought these allegations to the forefront. Before taking his life, Periera recorded a video statement exposing the alleged malpractices. While Anil Kumar Lobo was arrested and interrogated in connection with the case, members alerted the government to the possibility that his influence over local people’s representatives and officials may lead to the case being covered up.
Alleging MCC Bank Chairman Anil Kumar Lobo and his associates with engaging in serious misconduct, illegal money transfers, inciting deaths, and threatening individuals under the guise of authority from the government and judiciary, the complainants have requested a CBI investigation into the bank’s financial irregularities and the cases registered against these individuals.
A case has been registered at the Mangaluru Rural Police Station regarding the death of Manohar Periera, with members expressing doubts about whether justice will be served for this innocent victim. The letter further accuses Lobo and his team of running a chit fund business and coercing MCC Bank borrowers to participate in their schemes. They allegedly used forceful methods to extort money, and Periera was said to be one of their victims. The complaint also mentions that it has been brought to the judiciary’s attention that Periera’s cheques were forged.
According to whistleblowers, no transaction takes place at MCC Bank without bribery. It is alleged that a commission of 15% to 20% must be paid to the Chairman for loan approvals. This commission practice has reportedly enabled the sanctioning of loans worth thousands of crores over the years. The complaint further claims that chit fund schemes are being used to launder the illegal assets amassed through this “commission mafia,” amounting to hundreds of crores. It is also alleged that Anil Kumar Lobo, under the guise of loan recovery, seizes properties from borrowers who delay repayment, transferring these assets to proxies (benami) and generating enormous illicit wealth through illegal money transfers.
Bank members who dare to question these malpractices reportedly face severe retaliation, such as being subjected to smear campaigns or dismissed from the bank’s membership. Employees suspected of exposing these misdeeds are allegedly transferred to distant locations as a form of mental harassment or, in some cases, terminated from their jobs. The complaint notes that several such cases are currently under trial in the courts, pointing to a deep-seated culture of corruption and retaliation within the institution.
Anil Kumar Lobo is alleged to have openly boasted that as long as he has the backing of influential people’s representatives and connections within the judiciary, no case filed against him can harm him. He has reportedly managed to obtain stay orders to block investigations in numerous cases. In the case of Manohar Periera’s death, Lobo moved out of jail on grounds of ill health soon after his arrest. Furthermore, he also succeeded in obtaining an injunction from the High Court. Members have expressed concerns that fair investigation and social justice cannot be achieved even in the case of the bank’s alleged misdeeds and Periera’s death, as there is a similarity between Lobo’s statements and the actions of the police in the case. Therefore, the complainants have requested that the investigation of the case be entrusted to the CBI and urged the government to appoint an administrator while suspending the board of directors of the bank until the investigation is completed.