SHG fund embezzlement: Probe begins

JAJPUR:  Police on Monday started investigation into misappropriation of funds worth Rs 1 crore of several women self help groups (SHGs) in Endalaba panchayat under Dharmasala block of Jajpur district allegedly by a bank correspondent.

After at least 15 complaints were filed against bank correspondent Indumati Prusty by the women SHGs, Jenapur police swung into action. The SHGs alleged Prusty misappropriated their funds on the pretext of depositing the same in their respective bank loan accounts.

After registering a case, Jenapur IIC Umakanta Nayak started investigation into the matter on Monday. Nayak verified the documents of the SHGs, their transaction history and recorded the statements of the SHGs office bearers. The IIC will visit the Odisha Gramya Bank, Kabaatabandha branch where Prusty works. “Probe reveals that the bank correspondent has misappropriated the SHGs money”, said the IIC, adding Prusty is absconding. 

“The exact amount of misappropriated money would be known soon,” he added. Sources said, as many as 80 women SHGs in Endalaba panchayat had availed loans from Odisha Gramya Bank, Kabatabandha branch under Mission Shakti programme. As the branch is more than 10 km from the panchayat, the SHGs used to pay their monthly loan installments to Prusty to deposit the same in their respective loan accounts. When the SHGs’ office bearers demanded receipt for the money, the bank correspondent bought time citing different reasons.

Instead of depositing the money worth around Rs 1 crore in their loan accounts, Prusty reportedly misappropriated it. The matter came to the fore after the bank branch issued loan default notices to the beneficiaries.