Rs 370 crore bungled in Odisha cooperative banks

Audit reports have unearthed financial irregularities to the tune of Rs 370 crore in cooperative banks of the State where thousands of small depositors park their hard-earned savings.

Published: 29th March 2018 02:35 AM  |   Last Updated: 29th March 2018 06:31 AM   |  A+A-

A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu, November 15, 2016. (Photo | Reuters)

For representational purposes (File | Reuters)

By Express News Service

BHUBANESWAR: Audit reports have unearthed financial irregularities to the tune of Rs 370 crore in cooperative banks of the State where thousands of small depositors park their hard-earned savings.

The financial impropriety in these banking institutions is so widespread that the Government has ended up initiating over 20,000 proceedings.

Replying to a question by Rourkela MLA Dilip Ray in the Assembly, Cooperation Minister Surya Narayan Patra on Wednesday said as many as 7,037 cooperative bodies including Odisha State Cooperative Bank (OSCB), 17 Central Cooperative Banks (CCBs) and 16 Urban Cooperative Banks (UCBs) have reported the financial bungling to the tune of Rs 370.69 crore.

In OSCB alone, the bungling is estimated at Rs 9.8 crore whereas the State Government has managed to recover just about Rs 2.63 lakh. Against the 34 persons involved in these irregularities, the Government has initiated 24 surcharge proceedings.

Interestingly, in five CCBs at Banki, Aska, Nayagarh, Mayurbhanj and Khurda, the Government has not been able to recover even a single rupee despite launching proceedings.

Bargarh DCCB reported the biggest fraud of Rs 38 crore whereas the audit found bunglings to the tune of Rs 12 crore in Sundargarh CCB. In Nayagarh, the scam was estimated at Rs 8 crore while in Cuttack Central Cooperative Bank, the amount was Rs 6.9 crore.

Among the UCBs, Cuttack Urban Cooperative Bank reported the highest misappropriation of Rs 22 crore, whereas in Dhenkanal it was Rs 1.9 crore. In UCB, Bhubaneswar, the bungling was assessed at Rs 1.1 crore.
To recover the amounts, Patra said, the Government initiated 20,466 surcharge proceedings against 20,424 persons. So far, 15,254 cases have been finalised.

Financial rot

As many as 7,037 cooperative bodies including OSCB, 17 CCBs and 16 UCBs have reported the financial bungling
In OSCB alone, the misappropriation is estimated at Rs 9.8 crore
In five CCBs at Banki, Aska, Nayagarh, Mayurbhanj and Khurda, the Government has not been able to recover any amount
Bargarh DCCB reported the biggest fraud of Rs 38 crore

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