Financial audit reveals Rs.224.61 crore misappropriation of funds in cooperative banks in Odisha

Audit uncovered the involvement of 1,704 individuals in the financial irregularities

August 1, 2024

Odisha Govt uncovers massive fund misappropriation in cooperative banks

Financial audits of the Odisha State Cooperative Bank (OSCB), 17 Central Cooperative Banks (CCBs), and 13 Urban Cooperative Banks (UCBs) have revealed misappropriation of Rs.224.61 crore. State Cooperation Minister Pradeep Bal Samanta disclosed these findings in the Odisha Assembly on Wednesday, in response to a question from senior Congress leader Tara Prasad Bahinipati.

The audit also uncovered the involvement of 1,704 individuals in the financial irregularities.

Samanta said that Rs.16.63 crore has been realized 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, on Wednesday, the Registrar of Cooperative Societies, Odisha, suspended the management committees of the Odisha State Cooperative Bank Ltd and Odisha Cooperative Housing Corporations Ltd 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 interest of the bank and its members as well as the members of its affiliated cooperative societies.

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