BHUBANESWAR: As deposits amounting to Rs 5.6 crore remain unpaid to members of Panapana Service Cooperative Society (SCS) in Balasore district for more than four years due to large scale financial bungling by the management, the Registrar of Cooperative Society (RCS) on Saturday requested the state government to refer the case to the Economic Offence Wing (EOW) for investigation.
The office of the RCS has also directed the deputy registrar cooperative society (DR CS), Balasore division, to initiate criminal as well as departmental proceedings against the officials of the cooperative society for recovery of the embezzled amount.
An inquiry into the financial affairs of the Panapana SCS for five years from 2016-17 to 2020-21 revealed that deposits of members outstanding with the society was Rs 5,59,88,819 as principal and Rs 25,55,112 towards interest. A total amount of Rs 5,85,43,931 was due to the depositors as on March 31, 2021.
On the other hand, investment of Panapana SCS with the Bahanaga Branch of Balasore-Bhadrak Central Cooperative (BBCC) bank was Rs 1,42,181,63 as principal and Rs 3,70,531 as interest totalling Rs 1,45,88,694 which is only 27.52 per cent of the amount payable to the depositors. The differential amount comes to Rs 4,39,55,237.
“The transactions of Panapana SCS (both deposits & loans) except some SHGs have been stopped since 2019-20. As a result of which the depositors are not getting back their deposits and the loanee members are defaulting their loans since then. A huge number of petitions filed by the depositors in different quarters are pending finalisation,” said the inquiry report of ARCS, Balasore circle.
The report further said that huge withdrawals were made from the Bahanaga branch of BBCC bank during this period by secretaries of the cooperative societies, but surprisingly neither the bank managers or any other official, who were directly involved in such monetary transactions have questioned the illegal withdrawal of invested funds.
“The officials of the branch bank were well managed by the society secretaries to withdraw huge amounts from the deposits. It is construed that the bank officials (branch manager and assistant manager who were involved in such financial transactions were squarely responsible for the fraud caused by the society officials,” the report said.
“In present financial condition of the society, it is not possible on its part to meet the needs of the depositors. The differential amount of the depositors may be met from the Deposit Guarantee Scheme for PACS created at BBCC bank,” the report said.