Staff Correspondent

Subsidy amount of Rs.14.62 lakhs was drawn in the name of 18 fictitious SHGs

Procedures Before granting subsidy to any SHG, its validity should be verifiedThe SHG should submit a project reportSubsidy is released to the cooperative society concerned by chequeEach SHG should have a bank account

Karwar: Uttara Kannada District Vigilance and Monitoring Committee appointed by the Union Government to monitor the implementation of various Centrally-sponsored welfare schemes in the district has detected misappropriation of Rs.14.62 lakhs in a rural agricultural cooperative society at Hanehalli village of Kumta taluk. The committee is headed by Member of Parliament Ananth Kumar Hegde.

B.S. Pai and Sudha Gouda, members of the committee, told presspersons here on Friday that the implementing officer of SGSY scheme has drawn the subsidy amount of Rs.14.62 lakhs from the bank in the name of 18 fictitious women self-help groups (SHGs). They pointed out that before granting the subsidy to any SHG, it should be graded. The implementing officer should verify the validity of the SHG. The SHG should submit a project report before claiming subsidy. The gram panchayat concerned should recommend the case of each SHG on merit for release of the subsidy. The subsidy amount is released to the cooperative society concerned by cheque. Each SHG should have a bank account. The members said none of these requirements was fulfilled. They said the implementing officer had drawn the money directly from the bank. They wondered how this malpractice did not come to the notice of the higher officials in the zilla panchayat and taluk panchayat.

They said the officer concerned has admitted the fraud committed by him before a meeting of the society members. He had agreed to return the money. But nothing has been done so far. In view of this, the official should be placed under suspension and an investigation carried out, they said.