Times of India: Thiruvananthapuram: Thursday, 14Th
August 2025.
An RTI reply by cooperative department has exposed grave financial irregularities surrounding Panayarakunnu Farmers Social Welfare Cooperative Society.
The RTI query was filed by
one of the depositors who was allegedly cheated by the administrative panel
members. The society was reportedly functioning without following most of the
provisions of the state cooperative rules.
The monthly deposit scheme (MDS) was supposed to be passed by general body of the society and approved by the department for running chit funds and other schemes, but this was not done, the report stated.
A sum of Rs 61.40 lakh was supposed to be collected from customers through MDS. However, the society did nothing to collect the money despite being directed to do so. In the monthly expense register, a huge sum was found given as ‘secretary advance' and ‘president advance'.
A society is not supposed to grant loans and run MDS on the guarantee of cheques, but the Panayarakunnu society granted loans to several people on such a guarantee. A total of Rs 5.65 crore was collected by the society as deposits, but it was supposed to collect only Rs 25 lakh from loan arrears. The society did not keep enough funds in line with the deposits collected and was not in a position to clear the deposits of customers, the report said.
The society diverted the deposit amounts for MDS and other investments. Loans were granted without proper guarantees. By appointing more staff and collection agents than the permitted limits, the society spent over Rs 10 lakh on paying them commission and wages. Issues spotted in the audits were not rectified properly and the stock register was not maintained. Even in benami names, the accused took loans for their personal needs, but not even a single penny was paid back, the report added.
Meanwhile, depositors alleged that neither police nor the department took any action against the accused on their complaints.
An RTI reply by cooperative department has exposed grave financial irregularities surrounding Panayarakunnu Farmers Social Welfare Cooperative Society.
The monthly deposit scheme (MDS) was supposed to be passed by general body of the society and approved by the department for running chit funds and other schemes, but this was not done, the report stated.
A sum of Rs 61.40 lakh was supposed to be collected from customers through MDS. However, the society did nothing to collect the money despite being directed to do so. In the monthly expense register, a huge sum was found given as ‘secretary advance' and ‘president advance'.
A society is not supposed to grant loans and run MDS on the guarantee of cheques, but the Panayarakunnu society granted loans to several people on such a guarantee. A total of Rs 5.65 crore was collected by the society as deposits, but it was supposed to collect only Rs 25 lakh from loan arrears. The society did not keep enough funds in line with the deposits collected and was not in a position to clear the deposits of customers, the report said.
The society diverted the deposit amounts for MDS and other investments. Loans were granted without proper guarantees. By appointing more staff and collection agents than the permitted limits, the society spent over Rs 10 lakh on paying them commission and wages. Issues spotted in the audits were not rectified properly and the stock register was not maintained. Even in benami names, the accused took loans for their personal needs, but not even a single penny was paid back, the report added.
Meanwhile, depositors alleged that neither police nor the department took any action against the accused on their complaints.
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