Karnataka State Souharda Federal Cooperative, the apex body regulating cooperative societies formed under the Souharda Cooperative Act, will urge the RBI not to reduce financial powers of cooperative societies following allegations of misappropriation of funds by a Bidar-based cooperative society.
There is an imminent danger of RBI curtailing powers of cooperative societies following allegations of Kalyan Souharda credit cooperative society having channelised funds meant for investment into the share market into fictitious accounts. A delegation of senior cooperators will meet RBI officers in Bengaluru to urge them to allow them to exercise their powers of transacting through third party cheques, Vishwanth Hiremath, former president of the federation and head of the federation fact finding committee said in Bidar on Tuesday.
He was here to meet victims of the alleged diversion of funds by franchise operators of Anand Rathi and office bearers of Kalyan Souharda credit cooperative society. He said that after allegations that some cooperative banks were indulging in irregularities after demonetisation, RBI had disallowed them from exchanging currency. A similar situation may arise now as the Kalyan cooperative society has violated two vital rules — not following rules for third party transactions and allowing societies to open accounts of non -share holders,’’ he said.
Bidar police have registered five cases and arrested three of the six accused in the case. Arrested include Gurunath Jantikar, president of the Kalyan Souharda cooperative society and Channappa Agadi, who worked for the franchise. The other three are at large.
