Co-ops under scanner for loan fraud in Balasore, Rayagada


Balasore: Ekadasi Sahu, a farmer of Karianda village under Bhograi block in Balasore district, was appalled when she heard that she has over Rs 1 lakh due for repayment for a loan he had not even applied for.

Ekadasi had taken a loan of Rs 15,000 from Daunada Cooperative Society in 2008 for farming. He had repaid the loan within a year. Surprisingly, his account shows Rs1.45 lakh due for repayment.

“I had availed a loan of Rs 15,000. However, Rs 1.45lakh loan was approved in my name. I have only 10 decimals of land. How such large amount could be availed as loan,” said Ekadasi.

Even farmers Bansidhar Sahu of Daunada village and Ram Das of Kasiara village in the district have brought similar allegations.

An exclusive research by OTV revealed that the cooperative society issued fake loans in the name of these farmers three-four times than that of the original amount that they had actually applied for. Shockingly, the secretary of the cooperative society along with some other officials is suspected to be involved in such irregularities.

It is alleged that the officials of the cooperative have allegedly misappropriated around Rs 4.67 crore by issuing fake loans in the name of around 200 farmers.

Similarly, some officials of Kolonara Large-sized Multipurpose Co-operative Society in Rayagada district have also allegedly misappropriated crore of rupees by issuing fake farm loans.

Upon being informed, the Co-operative Department has sought a report from the Koraput Central Co-operative Bank within seven days.

“Audit has revealed misappropriation, therefore the file has gone to Registrar to issue notices to concerned officers to refund the money. Salary cut along with disciplinary action has been ordered against errant officials,” said Cooperation Minister Surya Narayan Patro.

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