Gujarat Exclusive > National-World > Rajasthan CM writes to PM Modi to protect investors trapped by multi-level co-op societies

Rajasthan CM writes to PM Modi to protect investors trapped by multi-level co-op societies


Prakash Bhandari, Jaipur: Rajasthan Chief Minister Ashok Gehlot has written to Prime Minister Narendra Modi to intervene and help the investors who invested their hard-earned money in multi-level cooperative societies.

Ashok Gehlot in his letter to Modi said that the multi-level societies have looted Rs 1419.77 crore of 73,158 investors of Rajasthan and Gujarat. The letter said that the multi-level societies are unable to pay back the investors.

The Union government with a view to regulate the societies implemented the Banning of Unregulated Deposit Schemes (BUDS) Act, 2019, but a lot is yet to be done to ensure that the depositors get their money back.

The letter states that under the provisions of the Banning of Unregulated Deposit Schemes Act, the state government has no regulatory role. Instead, the central registrar, Multi-level Cooperative Societies has been given regulatory power. The state government has suggested the Centre empower the deputy and assistant registrar to take appropriate action.

The chief minister urged PM Modi to direct the central registrar to take measures to give powers to the states’ deputy and assistant registrar.

Rajasthan CM cites example of Adarsh Credit Cooperative Society

Gehlot cited the case of a defaulting society—Adarsh Credit Cooperative Society—which committed several irregularities for which the central registrar appointed a commissioner. The commissioner’s job is to initiate the process of realising upon assets and discharging liabilities in concluding the affairs of the business, estate etc. But the commissioner, a retired IAS officer, because of the paucity of support staff, has not been able to do his job to provide relief to the depositors.

The letter urged that the central registrar should provide adequate support staff to the appointed commissioner to enable him to execute his work.

Depositors in trouble

The CM attracted the PM’s attention towards the plight of the poor depositors who have lost their lifetime earnings in the said Adarsh Cooperative Credit Society scam. He said a number of such depositors committed suicide and a lot of them are in extreme penury.

Gehlot urged that the appointed commissioner should take control of the remaining funds of the Adarsh Society and realise the loans from the parties who were issued loans by the society. The funds realised from the parties should be given to the depositors to enable them to sustain. The central registrar should take appropriate action to see that the commissioner starts work in an effective and productive manner.

CM suggests appointment of accounts, finance and legal experts

The chief minister suggested that chartered accountants, finance and legal experts should be appointed by the central registrar to monitor everything.

The depositors should be given 40 per cent of their deposited sum in the next 12 months and t the remaining amount of their deposits in the next 24 months.

The scam

The multi-crore Adarsh Credit Co-operative Society Ltd (ACCSL), led by influential businessman Mukesh Modi, was asked by the Union government last year to wind up its operations across India. Involved in a gigantic scam totalling Rs 9,474 crore, ACCSL allegedly siphoned majority funds of its over 20 lakh depositors.

On the basis of a confidential report of the Serious Fraud Investigation Office (SFIO) and Income Tax Department, the central registrar of cooperative societies directed to wind up the ACCSL registered as inter-state society with Union agriculture ministry’s cooperative society division.

Allegations against Mukesh Modi

Mukesh Modi, reportedly linked with top politicians, has been accused by SFIO of diverting huge funds to shell companies owned by Mukesh Modi’s aides in the garb of loans to be invested in real estate.

An order of central registrar of co-operative society Vivek Agrawal says Mukesh Modi, founder of the society, was linked with 120 private companies. Out of these 120 shady companies, 43 were given loans worth over Rs 2,334.30 crore from the society.

These companies turned out to be shell companies having no business activities at their given addresses.

The SFIO and Income Tax department had earlier submitted a report with agriculture ministry which says that “total deposits collected by Mukesh Modi (ACCSL) was Rs 9,474 crore”.

The loans and advances amounting to Rs 12,433 crore were outstanding. The report further reveals that loan amounting to Rs 12,406 crore were sanctioned to 180 companies and individuals out of which 122 companies were completely controlled and managed by Mukesh Modi’s family and his relatives, the report said.


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