Registrar wants bank accounts of fake credit societies freezed

JAIPUR: The registrar of cooperative societies on Wednesday has urged the central registrar of cooperative societies to freeze bank accounts of Adarsh, Navjeevan and Sanjeevani multi-state credit cooperative societies that face allegations of fraud.

Neeraj K Pawan, registrar of cooperative societies in Rajasthan, who has been appointed as the appropriate authority to act against fraud cooperative societies, has sought action against the credit cooperative societies so that the money of investors can be secured.

In the letter, Pawan said that there have been constant allegations of irregularities, embezzlement and fraud against Adarsh, Navjeevan and Sanjeevani multi-state cooperative credit cooperative societies which are registered with the central registrar of cooperative societies.

He wrote that these societies are trying to sell off their immovable properties and trying to liquidate them.

I n v i e w o f t h i s , Pawan, requested the central registrar to freeze the accounts that are operational in Rajasthan of these three multi-state cooperative societies.

The Special Operations Group (SOG), investigating cases of fraud by the credit cooperative societies, found that Adarsh Credit Cooperative Society Ltd had siphoned off more than Rs 1,400 crore of 20 lakh investors’ funds, while the Sanjeevani Credit Cooperative Society duped around two lakh investors of Rs 700 crore. Navjeevan Credit Cooperative Society Ltd had duped 3,767 investors worth Rs 33.44 crore.

In a letter to the inspector general of the Registration and Stamps department in Ajmer, Pawan said that there have been cases where credit cooperative societies have sold their immovable properties and liquidating their assets.

The state government had on Oct o b e r 1 5 i s s ue d o r d e r s appointing the Registrar of Cooperative Societies as the competent authority to act against fraud societies.

The move came after the centre passed ‘The Banning of Unregulated Deposit Scheme Act,’ 2019 to curb the rising instances of fraud by cooperative societies.

After notification of the act on July 31, the Reserve Bank had asked state governments to issue orders designation the registrar as the competent authority.