VMC Employees' Co-op Credit Society Charged with Funds Diversion

Members of the Vijayawada Municipal Corporation Employees Co-operative Credit Society are worried over the widespread criticism that the management of the society is resorting to financial irregularities.

Published: 06th July 2014 09:13 AM  |   Last Updated: 06th July 2014 09:13 AM   |  A+A-

VIJAYAWADA: Members of the Vijayawada Municipal Corporation Employees Co-operative Credit Society are worried over the widespread criticism that the management of the society is resorting to financial irregularities.

It is alleged that various irregularities have been found in the society’s financial affairs during a financial audit by the co-operative department. In addition to this, squabbling among board members has made matters worse.

Ironically, though alleged irregularities have taken place in the society on many an occasion, officials of the co-operative department have not taken any action. The issue has come to the fore only after the deputy registrar of the co-operative department, Krishna district slapped a notice on the society in June.

“About 16 members of the VMC Employees Co-operative Credit Society formed another co-operative society as an affiliate and diverted the funds to it. The funds were misused as loans and advances given to some members. The members have also collected deposits from non-members like the banks,” said A Ranganayakulu, a member of the society.

When the co-operative department served a notice to the society in this regard, the management said that it would repay the amount to depositors and knocked on the APCOB’s doors for a loan. As there is no joint account for the society with APCOB, it is unlikely that the loan will be sanctioned, adds Ranganayakulu.

Many irregularities like the misuse of society funds for personal use by those at the helm of management were reported earlier. The management is charged with not taking an initiative to recover these loans. Even the VMC owes about `2.7 crore to the society. Though the society has lost interest to the  tune of `80 lakh on the pending dues, the management has not been making any effort to collect the money, complains a member who requested anonymity.

However, VMC Employees Cooperative Credit Society president B Eswar said that some members have been levelling baseless charges only to defame the society with ulterior motives. “Our society was established in the 1930s and it is a reputed organisation. We have already started repaying the matured deposits and have been paying good dividends to all our members.” he said.

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