EOW nabs ex-president, secretary of cooperative society engaged in loading of iron ores for fraud

The Economic Offences Wing (EOW), Odisha, arrested two ex-officials of Gandhamardhan Loading Agency & Transporting Cooperative Society Ltd. in Keonjhar for allegedly committing fraud and misappropriating Rs 40 to Rs 50 crore.

The accused have been identified as Manas Ranjan Barik, ex-President and Utkal Das, secretary of Gandhamardhan Loading Agency & Transporting Cooperative Society Ltd.

Registered in 2006, Gandhamardhan Loading Agency & Transporting Cooperative Society Ltd is engaged in loading iron ore from the mines in Keonjhar with the objectives of the economic betterment of the inhabitants of the mining affected areas from the profit made by the Society.

Also Read: Three held in Odisha for Rs 16.96 crore GST fraud

As per EOW, from 2017-18 to 2023- 24, the operation of the Society was monopolized by a handful of influential outsiders including the office bearers who by entering into a criminal conspiracy and manufacturing false documents pertaining to the labour payment, periphery development, infrastructural expenses, payment to the affected members, EPF deductions etc., misappropriated crores of rupees.

EOW Findings

As per EOW, the Cooperative Society used to charge exorbitantly for loading iron ores- Rs. 60 per ton from the buyer agencies which is abnormally higher than any other loading agency. The Cooperative Society was profiting a lot over the years and was increasing the loading charge every year. 

Besides, the Cooperative Society had shown payment to different persons, agencies etc. in the name of different expenses without any supporting instruments like tender, work order, UC, vouchers etc. 

Surprisingly, the payments shown to have been made to different executants do not find place in the concerned registers like cash book, day book, ledger, attendance book etc. 

Most of the payments amounting to crores have been made through cash, self-cheques without any payment acknowledgement. 

Without specifying the nature of work, name of the project, name of the executants, measurement work, approvals etc., the payments have been made only to siphon off the profit of the Cooperative Society. The office bearers, as found, have spent/diverted the money against the mandate of the by-laws of the Society. There has not been any audit of the Cooperative Society since 2012 excepting for a special audit held in the year 2022 basing on some local allegations, EOW said.

Although serious irregularities were found during the audit, no action was taken against the erring office bearers. Almost all self-cheques were allegedly issued without any narration of the work for which the same were issued, have been signed by the arrested President and the Secretary who don’t justify their issuing such cheques for crores of rupees in favour of a numbered persons, EOW said in a statement.