Irregularities Worth Rs 224.61Cr Detected In Cooperative Banks In Odisha During Audit

A financial audit has unveiled significant misappropriation of funds amounting to Rs 224.61 crore across various cooperative banks in Odisha. The audit scrutinized the accounts of the Odisha State Cooperative Bank (OSCB), 17 Central Cooperative Banks (CCBs), and 13 Urban Cooperative Banks (UCBs) in Odisha, revealing extensive irregularities.

State Cooperation Minister Pradeep Bal Samanta disclosed these findings while responding to a query from senior Congress leader Tara Prasad Bahinipati in the Odisha Assembly on Wednesday. Samanta confirmed that the audit identified the involvement of 1,704 individuals in the misappropriation of these funds.

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As of now, authorities have managed to recover Rs 16.63 crore from the individuals implicated in the fraud. Additionally, the department has issued directives to recover another Rs 30.73 crore from 706 individuals deemed responsible for the financial misconduct.

In a related development, the Registrar of Cooperative Societies in Odisha has taken decisive action by suspending the management committees of both the Odisha State Cooperative Bank Ltd and the Odisha Cooperative Housing Corporations Ltd. This suspension is based on findings that the committees have acted in ways detrimental to the interests of the banks and their members, as well as to the affiliated cooperative societies.

These measures reflect the seriousness with which the state is addressing the mismanagement and fraudulent activities within its cooperative banking sector, aiming to restore financial integrity and accountability.