Cooperative society fraud: Probe shifted to Vigilance

Amount bungled now stands at Rs19 crore

Tribune Web Desk

Updated At : 01:53 PM Sep 27, 2020 IST

PK Jaiswar

Tribune News Service

Amritsar, September 26

The Punjab Government has shifted the probe into the alleged bungling of government funds by several cooperative societies here to the Vigilance Department.

Cooperation Minister Sukhjinder Singh Randhawa confirmed the development to The Tribune on Saturday.

The case
In February this year, the police registered an FIR into a fraud of Rs3 crore at Tarsikka branch of the Amritsar Central Cooperative Bank. The preliminary probe revealed that around Rs90 lakh was bungled in 2009, too. However, the authorities hushed up the matter then.
According to sources, the police probe found that officials colluded and misappropriated funds running into crores.
The probe was extended to other branches of the cooperative bank, thereby unearthing a major scam. It was found that frauds were committed at five branches, including Tarsikka, Saidoke Lehal, Bhattike, Chogwan Sadhpur and Kohala.

“We wanted a detailed probe into the scam perpetrated by Amritsar Central Cooperative Bank officials in connivance with officials of the Audit Department. The bungled amount which was initially pegged at Rs3 crore has now reached Rs19 crore,” he said.

Earlier, the probe was being handled by the Amritsar Rural police. Randhawa said the Director of the Vigilance Department had now been asked to conduct a thorough probe into the alleged scam

In February this year, the police registered an FIR into a fraud of Rs3 crore at Tarsikka branch of the bank. The FIR was registered under Sections 409 (criminal breach of trust), 420 (cheating and dishonestly inducing delivery of property) and 120B (criminal conspiracy) of the Indian Penal Code. Randhawa said the preliminary probe revealed that around Rs90 lakh was bungled in 2009, too. However, the authorities hushed up the matter then.

In the FIR registered this year, four persons, including the branch manager of the bank, Rakesh Kumar, and Ram Kishore of Ludhiana were booked. Two of their accomplices, Sukhdev Singh of Sarai village and Sukhbir Singh of Bhatti village (both secretaries of the cooperative societies), were also booked. The police later arrested Rakesh Kumar and Ram Kishore.

The police filed a challan in the local court on May 16. According to sources, the police investigations found that Senior Manager, District Manager, bank officials, Deputy Registrars, Assistant Registrars, inspectors of cooperative societies and officials of the Audit Department colluded and misappropriated funds running into crores.

The investigation was extended to other branches of the cooperative bank, thereby unearthing a major scam. It was found that frauds were committed at five branches, including Tarsikka, Saidoke Lehal, Bhattike, Chogwan Sadhpur and Kohala, falling under the jurisdiction of the Tarsikka branch of the bank.