A certain cooperative bank, named after a great saint attracted a number of depositors

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• Business Ethics
•  
• Case (20 Marks)
• A certain cooperative bank, named after a
  great saint attracted a number of depositors,
  became customer friendly, and carried on good
  business transactions. However during an audit by
  the cooperative department, irregularities to the
  tune of Rs. 10 crore surfaced. It was found that
  the chairman of the bank himself used Rs. 10
  crores through several loan accounts. Due to
  these irregularities, RBI had to stop the
  transactions and account holders could not
  operate their accounts. The cooperative
  Department had to appoint an Administrator.

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• Answer the following question.
•  
• Q1. Is it proper and ethical on the part of the
  authorities to mislead the account holders and
  customers by carrying on irregular activities,
  especially when the bank was named after a holy
  personage?
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• Q2. Is there any breach of ethical conduct on the
  part of the chairman of the bank for using Rs. 10
  crores of the bank through loan accounts? If so,
  give reasons
•  

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