A thorough investigation is on into the loan scam in Tamil Nadu’s Kurumbur Primary Agriculture Cooperative Bank involving the disbursement of Rs 2.03 crore without taking any gold collateral, reports Hindu.

The bank has 3,800 members out of which over 500 members have been given loans. The scam came to light while the officials from the Central Cooperative Bank checked the records of the bank.

It is said 261 of the 548 bags containing mortgaged gold ornaments are missing. The chairman of the bank is suspended pending the inquiry.

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