Co-operative society in the dock for cheating investors

The Managing Director of State Souharda Federal Cooperative Limited has filed a complaint with the Subramanyapura Police against the board members of Srivaibhav Souharda Pattina Sahakari Niyamita for allegedly defrauding the investors.

Sharanagouda Mr. Based on Patil’s complaint, the police on Saturday charged the accused with forgery, fraud and interest under the Karnataka Financial Establishments Protection Act and the Prohibition of Unregulated Deposit Schemes Act.

Mr. Patil said in his complaint that based on the complaints of the investors, he had deputed a district coordinator to investigate the matter and submit a report.

The society had sanctioned loans to investors and firms belonging to the members of the society without following the necessary due diligence and safeguards to sanction loans worth Rs 64.6 crore during 2020-21. Many loans have defaulted and society is unable to recover them. It has a cascading effect on the return of dues to investors, the complaint said.

An investigation also revealed the involvement of former directors, CEOs and board members, which requires a detailed investigation, Mr. Patil said.