Irregularities running into crores detected in co-operative society

BAGALKOT: Largescale irregularities have been alleged at the Minority Credit Cooperative Society Ltd here in disbursement of loans at varying interest rates. The issue came to light after a private individual lodged a complaint with the Lokayukta in Bengaluru.

Social activist Namadev Salapur lodged a complaint with the Lokayukta in Bengaluru on June 27 this year. Following this, the Lokayukta has directed the deputy registrar of cooperative societies in Bagalkot to investigate the complaint when the irregularities came to light.

The deputy registrar of cooperative societies is undertaking a probe on the directions of the Lokayukta.

The cooperative society has given out loans running into several crores, and surprisingly, Rs 5.50 crore was given members of a single family. A total of Rs 10.66 crore was given to a group of three families against cooperative norms.

The interest rates levied on the loans also varied hugely, ranging between 14 pc and 16 pc in violation of rules. While the bank has been collecting only the interst part, no effort was made to recover the prinicipa amount.

So far, the probe has revealed nine cases of violation of rules and notices have been issued to the bank administration on November 3 including bank president Al Haji Doddamani, vice-president H D Choudury, manager H B Pinjar and the directors. They have been asked to submit their replies within 15 days and it is being said that the bank administration will likely be superceded.