Paddy procurement scam: Cases registered against 37 MDs of cooperative societies

Koraput: The Vigilance SP of Jeypore division has registered cases against 37 managing directors of large area multi-purpose cooperative societies (LAMPS) in the undivided Koraput district on charges of financial fraud to the tune of Rs 4 crore committed through bogus paddy procurement bills.

Jeypore Vigilance SP Harekrushna Behera informed that after an enquiry into allegations of misappropriation, 37 cases have been registered against the accused including the then Deputy Registrar of Cooperative Societies (DRCS).

According to sources, 48 LAMPS were given the responsibility to procure paddy from mandis between 2012-13 and 2014-15 with processing and repacking expenditure of about Rs 5.67 per quintal of paddy for millers. However, the government later found that the MDs of 37 LAMPS had sent requisition of having incurred expenditure of Rs 8.80 per quintal of paddy.

After a probe, it was revealed that such inflated requisition led to a loss of Rs 4, 10, 36,279 to the government during the two years.

The matter came to light after OTV carried out a special investigation and unearthed the scam in which officials of cooperative banks in four districts of the State, Nabarangpur, Malkangiri, Rayagada and Koraput, under the Koraput Central Cooperative Bank, in collusion with middlemen were found to have amassed lakhs of rupees.