Money for depositors after govt releases assets

hyderabad:even as the internal audit of the krushi bank revealed more mismanagement and irregularities, it became apparent that all the depositors of the bank will get their money back only if the government releases the properties and assets of k venkateshwara rao, seized by the police. the assets, including some shares, amount to over rs 20 crore.the deposit credit guarantee corporation had promised to release rs 25 crore, of which rs 15 crore has already been released to meet the claims of beleaguered depositors. however, according to official sources, there will still be undischarged claims in the range of about rs 13.5 crore, unless the assets and properties of venkateshwara rao are realised and paid to the depositors. the liquidators have till saturday night made a payment of rs 2 crore to the depositors. sources told the times of india, that the official liquidator had received about 8,300 claims, most of them having more than rs 1 lakh deposit in the bank. there are about half a dozen depositors having over rs 15 lakh deposit and two persons had deposited about rs 2 crore each in the bank. there are about 200 depositors with about rs 5 lakh each in the defunct bank. the liquidators have decided to pay off all depositors with deposits below rs 1 lakh in full. however, depositors of bigger amounts will be paid on pro rata basis depending on the availability of funds, subsequently. all the payments are expected to be made by january 15, the sources said. meanwhile the audit of the accounts, which is in the preliminary stages, indicate that the management had advanced money to the tune of rs 30 crore, mostly to companies floated by venkateshwara rao and his relatives. the directors of the bank reportedly amended the stipulation of reserve bank of india which said that temporary overdraft should not exceed rs 10,000 and advanced rs 90 lakh to some companies owned by rao, by amending the rules. the amount was paid as overdraft without any suitable security. the official chartered accountant is still in the process of examining the vouchers and other documents and the final report is expected by the end of this month. the cbcid, which investigated into the scam had seized the cash chest containing rs 6.5 crore and taken in its possession some vital documents showing the involvement of top officials of the bank in the scam.these documents are yet to be made available to the accounting officials. the officials are eagerly awaiting the release of assets and properties belonging to venkateshwara rao, who has fled the country. the procedure involved is said to be complicated frozen assets * depositors to get money only if govt releases assets of venkateshwara rao * many undischarged claims in the range of rs 13.5 crore * cash chest containing rs 6.5 crore, documents show involvement of top officials in scam