Rs 224 cr fund misuse detected in coop banks: Minister

Bhubaneswar: Misappropriation of funds to the tune of Rs 224.61 crore has been detected in various cooperative banks across Odisha. The irregularities came to the fore during the financial audit of Odisha State Cooperative Bank (OSCB), 17 Central Cooperative Banks (CCBs) and 13 Urban Cooperative Banks (UCBs) in the State.

The information has been shared by State Cooperation Minister Pradeep Bal Samanta while answering a question asked by senior Congress leader Tara Prasad Bahinipati in the Odisha Assembly on Wednesday. Samanta also told the

Assembly that the audit found the involvement of as many as 1,704 people in the misappropriation of the funds.

He said Rs 16.63 crore has been realised till date from the persons involved in the misappropriation of the funds over several crores. The department has also issued directions for the recovery of another Rs 30.73 crore from 706 persons found responsible for the fraud.

Meanwhile, the Registrar of Cooperative Societies, Odisha, on Wednesday suspended the management committees of Odisha State Cooperative Bank Limited and Odisha Cooperative Housing Corporations Limited under the Odisha Co-operative Societies Act, 1962 over misappropriation of funds.

The department, in its orders, said that management committees are acting in

a manner prejudicial and detrimental to the interests of the bank and its members as well as the members

of its affiliated Cooperative Societies.