Inquiry against 99 co-op banks & societies stalled

T'puram: Owing to failure of the cooperative department in filing objections at the high court, inquiries and revenue recovery proceedings against 99 banks, including societies, in the cooperative sector remain stalled in the district. The court stayed the proceedings as the department did not raise any objection when the pleas submitted by the administrative panel members, who are accused of committing irregularities to siphon off crores of rupees of the depositors, demanding to stall the inquiry and actions against them were considered.
The accused approached the court when the department was holding inquiries as per Section 65 of the state cooperative rules at some institutions following corruption allegations. In some firms the department initiated revenue recovery proceedings as per Section 68 after spotting irregularities in the 65 inquiries. The depositors' forums of various societies alleged that the department keeps a wilful silence at the court in a bid to support the accused in escaping departmental actions.
However, the officers at the department cited staff shortage for the mess but claimed that they would challenge the stay orders one by one in the coming days. "Nearly 2,000 financial institutions are functioning in the district and they include 120 major cooperative banks and nearly 500 societies. The remaining are small groups which are not allowed to accept deposits, but they work as self-help groups. At present, 65 inquiries and 68 proceedings are going on against 10 financial institutions. With the existing staff, we have to hold inspections at all these 2,000 institutions. On top of all, we have to hold inquiries and other proceedings on the basis of complaints and irregularities and it prevents us from filing objections at the court in time. However, we will do it at the earliest," said an officer at the department.
Vanchinadu Bhavana Nirmana Sahakarana Sangham, Thiruvananthapuram District Commercial Welfare Cooperative Society, Thiruvithamcore Cooperative Society, Nemom Service Cooperative Bank, Vellanad Rajiv Gandhi Residents Cooperative Society, SMC Cooperative Housing Society, Mudavanmugal Residence Welfare Sahakarana Sangham, etc., are among the institutions where panel members are accused of committing irregularities.