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AP: Rs 220 crore loan scam unearthed in cooperative society | Amaravati News

Loan Scams

AP: Rs 220 crore loan scam unearthed in cooperative society | Amaravati News

KAKINADA: Allegations of large-scale misappropriation of funds worth 220 crore have hit a cooperative society in Kakinada district.
Kakinada district collector Kritika Shukla has written to the SP to protect the interests of the 19,000 depositors of Jaya Lakshmi Mutually Aided Multipurpose Cooperative Society Limited.
Police have taken up an investigation based on a complaint by representatives of the depositors that deposits were not credited after maturity. The depositors have requested that action be taken against the managing director and the committee members of the society.
A preliminary inquiry has been conducted by a team led by the district cooperative officer at the 29 branches of the society in Kakinada, Konaseema, East and West Godavari, Visakhapatnam and Vijayawada districts. The inquiry found irregular sanction and disbursement of loans to three managing committee members without obtaining proper security or process. It was also established that loan amounts were misappropriated and the amounts are overdue andpending recovery.
A sum of 220.94 crore was reported as suspected misappropriation by the society under irregular/benami loans.
According to Borra Kanaka Durga Prasad, district cooperative officer, Kakinada, the managing committee collected deposits of 457.48 crore by assuring the highest interest amount upon maturity as well as a monthly interest of 13.7%. The accused intentionally sanctioned huge amounts as loans to their relatives without obtaining…

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