THIRUVANANTHAPURAM: The investigation into the BSNL Engineers’ Cooperative Society scam has concluded, recommending the recovery of Rs 362 crore from 19 governing body members and one employee. Conducted by the cooperative department, the inquiry identified liabilities stemming from three governing bodies operating since 2007.
The misappropriated total comprises Rs 257.34 crore in principal and Rs 104.67 crore in interest, calculated at an 18% rate up to December 31, 2024. The largest recoveries are expected from nine members who served between 2017 and 2022, each responsible for Rs 35 crore—Rs 25 crore of this amount being the misappropriated funds and Rs 10 crore as accrued interest. All of these individuals were employees of BSNL.
From the eight members who held office from 2012 to 2017, Rs 90 lakh will be recovered from each. In addition, seven members who served between 2007 and 2012 each hold a liability of Rs 14 lakh.
V R Gopinathan, the primary accused, was the honorary secretary during the first two terms and became president in 2017. The multi-crore fraud occurred during his five-year tenure as president, which ended six months ago with his passing. The total recoverable amount from those responsible during this period is Rs 352 crore, inclusive of interest.
The Crime Branch’s Economic Offences Wing is currently investigating the case. The inquiry revealed that Gopinathan, along with employee A R Rajeev and associates, misused the embezzled funds for real estate investments and private financial ventures.
Audit findings indicated that, aside from bank transactions, most records submitted were falsified. Fake receipts, vouchers, and ledgers were created to conceal the scam, and it was found that large deposits made by the society had not been accurately recorded. Gopinathan also misappropriated these funds, and the investigation uncovered fictitious loans, alongside manipulated records that falsely indicated settled loans as outstanding.
Meanwhile, N A Abraham, convener of the BSNL Depositors’ Forum, filed a writ petition in the High Court requesting an Enforcement Directorate (ED) inquiry into the case.