THIRUVANANTHAPURAM: The BSNL Engineers Cooperative Society has incurred a loss of Rs 260.18 crore due to unauthorised loans and fake investment documents, a cooperation department report on the alleged scam in the society has revealed.
Since the society lacked proper records, the report was prepared by the investigating officer with information gleaned from the affidavits submitted by depositors. The report reveals that the perpetrators transferred depositors’ funds directly into their own accounts without recording them in the society’s register. Though fixed deposits amount to Rs 222.47 crore, this amount is missing from the society’s accounts as the accused misappropriated the funds.
As many as 13 methods were used to cause these losses amounting to crores. The report highlights irregularities carried out by employees using fake loans, chit fund frauds, and other malpractices.
The report — submitted to the Registrar of Cooperative Societies — contains a detailed account of how the losses occurred and the various means by which the fraud was executed.
Meanwhile, the Enforcement Directorate (ED) has initiated a probe. It began two weeks ago after registering an Enforcement Case Information Report (ECIR). The ED had written to the government, seeking details of the case. The letter to the additional chief secretary requested information including the amount evaluated so far in connection with the fraud, details of the accused arrested to date, and the specifics of charges filed under the BUDS Act.
The case is currently being investigated by the Economic Offences Wing of the Crime Branch. The government has approached the High Court against the trial court’s stand on the charges framed under the BUDS Act. As part of the case, 131 properties have been attached. The first chargesheet names 21 accused, including the president, secretary, and staff members of the society.
A total of 1,063 FIRs have been registered by the Vanchiyoor police in connection with the fraud. However, many benamis and close relatives of the accused, who possess properties disproportionate to their known income, have not been questioned. The financial dealings of the accused with parallel finance institutions and their gold deposits are yet to be investigated.
“Another issue is the rapid sale of properties by people out on bail, taking advantage of legal delays due to the ongoing consideration of Sections 3 and 5 of the BUDS Act by the High Court,” said Prasad Nair, a member of the BSNL Cooperative Society Depositors Association.