The officials arrested include Subodh Kadam, administrator, Abdul Rahim Mukri, former vice-president and former manager Khalid Asif Amin. Police said that the trio has been involved in the embezzlement of funds from Mahatma Phule Backward Class Development Corporation, Vasantrao Naik Development Corporation and Lokshahi Annabhau Sathe Development Corporation which have been set up to aid the down-trodden by the State and Central governments.

Police said that from the Rs 5 crore deposited in the bank which is under liquidation, only a sum of Rs 5 lakh has been returned to the Annabhau Sathe Development Corporation. Police further said that a chartered accountant is also involved in the fraud along with the trio. The accused deposited the amount in Sangli Bank andused it for their own benefit. Enquiries with the Sangli Bank and Bank of Punjab revealed that fake accounts in the name of Kadam were opened by misusing his office letterheads and rubber stamps. Police said that Kadam alone had transferred into accounts belonging to him and his family members.

The fraud came into light in May this year when the Awami Bank failed to repay the amount deposited within the required 40 days. An inquiry was initiated in June where it was revealed that the amount was never deposited in the bank.