RTI exposé: Rs 22 crore fraud in 231 cooperative societies in Tamil Nadu across two years

CHENNAI: Following an RTI query, Arappor Iyakkam, an anti-graft organisation, revealed Thursday financial irregularities to the tune of Rs 22 crore involving 231 Cooperative Societies during 2020-21 and 2021-22, and sought an investigation into the corruption.

In a complaint to Cooperative Minister KR Periyakaruppan, Finance Minister Thangam Thennarasu and Finance Secretary T Udayachandran, M Radhakrishnan of Arappor Iyakkam demanded that a special committee be formed immediately to look into the financial irregularities and an FIR be registered against those involved.

According to the information received under the RTI Act, 74 cooperative societies were involved in financial irregularities amounting to Rs 10.18 crore in 2021-22. Of them, the Salem District Central Cooperative Bank recorded corruption to the tune of Rs 5.90 crore, followed by Rs 2.02 crore in Arani Town Cooperative Bank. In 2020-21, 157 cooperative societies were involved in corruption, amounting to Rs 12.62 crore.

Radhakrishnan said during 2011-15 and 2015-20, a total of 61 cooperative societies were involved in financial irregularities to the tune of Rs 13.61 crore.

He stressed that management committee members and those involved in irregularities should be banned for life from cooperative societies.

The Arappor Movement demands that disciplinary action be taken against the secretaries and accountants of the cooperative societies involved and that the properties of the corrupt be attached.

Recalling the complaint filed by it on June 21, 2023, on Rs 136-crore irregularities across 1,068 cooperative societies between 2015 and 2021, he said no FIR was registered against additional registrar Baskaran of Elavamalai Cooperative Building Society in Erode, where Rs 33.23-crore irregularities took place. He sought an inquiry into zonal registrar and joint registrar for not initiating action against corrupt officials.