EOW Probes ₹17.88 Crore Mumbai Credit Society Fraud

The Economic Offences Wing (EOW) has taken over the investigation into an alleged ₹17.88 crore financial fraud at Sumitra Cooperative Credit Society Limited in Mumbai. The case was registered at D.B. Marg Police Station following a complaint by chartered accountant Santosh Gangaram Shigwan.

Shigwan was appointed to conduct the statutory audit of the society for the financial year 2023-24. During the audit, he allegedly detected several financial irregularities, including the creation of fraudulent loan accounts and disbursal of loans without mandatory documents.

The alleged irregularities relate to the society's head office and branches at Andheri, Mulund, Nalasopara, and Dapoli. The complaint names several former office-bearers, including president Rajaram Govind Gorivale and vice-president Pandurang Sayaji Thore, as well as directors and other officials.

According to the complaint, between 2010 and March 31, 2024, the accused allegedly entered into a criminal conspiracy and prepared loan files in the names of certain members without their knowledge or consent. Forged signatures were allegedly used on loan application forms, after which the loans were sanctioned and the money allegedly diverted for personal benefit.

In some cases, although the borrowers allegedly repaid the loans, the repayments were not recorded in the society's books of accounts. Despite this, the borrowers were allegedly issued No Objection Certificates (NOCs) showing that their loans had been repaid.

The audit also allegedly found cases where loan recovery was made through the personal savings account of Manohar Shankar Lale, the society's secretary and special executive officer. Loans were allegedly sanctioned from the society's head office, Andheri, and Dapoli branches without completing mandatory documentation.

The total amount involved in this category of alleged irregular lending and misappropriation has been stated as ₹1.40 crore. The EOW is currently investigating the matter and has not made any arrests yet.

The Sumitra Cooperative Credit Society Limited is a Mumbai-based cooperative credit society that provides financial services to its members. The society has several branches across the city and is regulated by the Office of the Commissioner and Registrar of Cooperative Societies, Maharashtra.

The alleged fraud at the society is a significant concern for its members, who have deposited their savings with the society. The EOW's investigation is expected to reveal the extent of the fraud and the involvement of the society's officials.

The case highlights the need for greater transparency and accountability in cooperative credit societies. The EOW's investigation is a step towards ensuring that those responsible for the alleged fraud are held accountable and that the society's members are protected.

In conclusion, the EOW's investigation into the alleged ₹17.88 crore fraud at Sumitra Cooperative Credit Society Limited is a significant development in the case. The investigation is expected to reveal the extent of the fraud and the involvement of the society's officials, and will help to ensure that those responsible are held accountable.