The State Government will bring guidelines for chartered accountants, who audit cooperative societies, prescribing punishment and number of societies that they can audit in a year among others.
Cooperation Minister S.T. Somashekar told the Legislative Council on Tuesday that the Government has held multiple rounds of discussion, and a Bill will be introduced to this effect in the next session of the legislature. “Currently, there is no limit for the CAs to audit the cooperative societies, and that in many cases, they just affix their signatures. This is leading to irregularities. We want to prevent it.”
The Minister said that the Government has cracked down on several such CAs, and has barred 60 CAs from further audit of societies after re-audit found that their audits had been improper. Mr. Somashekar said that about 1,700 CAs have registered in the State.
Names of defaulters who owe ₹924 crore to be published
Stating that very important persons in society have defaulted on loans extended by Sri Guru Raghavendra Sahakara Bank, Cooperation Minister S.T. Somashekar on Tuesday said that he had directed the investigating agency to publish the names of 24 persons who have defaulted on ₹924 crore, resulting in the problems to the bank.
Responding to a question from Congress member U.B. Venkatesh in Legislative Council, Mr. Somashekar said, “The total loss has been estimated at ₹1,792 crore and 24 persons have defaulted on repayment of loan to a tune of ₹924 crore. I have told CoD officials investigating the case to notify the name of persons in newspapers. They are very important persons in society.”
He said that the ongoing re audit of accounts of the bank since 2014-2015 has so far found irregularities totalling to ₹1,623 crore till 2016-2017. “The re-audit of later years are still under way.” The Minister said that irregularities to a tune of ₹295 crore has been found in Vashishta Credit Cooperative Society.
