Telangana: Major Fraud Uncovered in Cooperative Societies

Nizamabad: In the absence of timely audit reports, large-scale irregularities committed by the chairman of the primary agriculture cooperative society and his staff across societies in Nizamabad district went unnoticed for years together.

The fallout is that members of many societies, especially farmers, are worried over the financial soundness of the cooperative societies.

There are several allegations against primary agriculture cooperative societies at Ethoda in Kotagiri mandal, Padagal in Velpur mandal and Makloor.

Allegedly, custom milling rice funds to the tune of around Rs 8.8 crore were misappropriated in Ethoda society, which was once renowned for its vibrant cooperation activities. Apparently, the fraud was committed by some managing committee members with the support of errant employees.

Officials issued notices to the accused demanding an explanation. Reportedly, the accused enjoy the support of ‘influential people’ within the state government.

In Makloor mandal, Rs 3.19 crore funds pertaining to fertiliser revenue and paddy procurement were misappropriated by some committee members of the primary agriculture cooperative society.

Assistant registrar of the cooperation department Ramavathi Kothur was appointed as the inquiry officer into the charges framed under section 51 of Telangana State Cooperative Societies (TSCS) Act, 1964.

In the absence of properly maintained intellect day books, minutes books and stock registers, there was difficulty in tracing the irregularities in several primary agriculture cooperative societies.

Speaking to Deccan Chronicle, a senior officer from cooperative department said that paddy procurement and fertilizer sales are key responsibilities for PACS managing committee members. Some members of managing committees utterly neglected their responsibilities and misappropriated funds, he said.