Separate audits into the working of the Bank were conducted by 91 the Reserve Bank of India as well as by the Co operative Department of the Bihar Government for the years 1972 73 and 1973 74 during the course of which a large number of irregularities (such as non maintenance of cash books in a proper manner, grant of over draft facility without current account etc ), illegal practices, acts of defalcations and malversation of funds of the Bank came to light; in particular the Audit Reports disclosed that huge amounts running into lakhs of rupees had been squandered away by (a) giving loans to non members, (b) giving loans even without application, agreement or pronote, (c) giving loans without hypothecations, (d) giving short term loans instead of realising cash on sale proceeds even for hypothecated goods, (e) giving loans to the same persons in different names and (f) giving loans to fictitious persons and non existing firms or industries etc.