The managing director of the State Souharda Federal Cooperative Ltd. has filed a complaint with the Subramanyapura police against board members of Srivaibhava Souharda Pattina Sahakari Niyamitha for allegedly cheating investors.
Based on the complaint by Sharanagouda G. Patil, the police on Saturday charged the accused with forgery, cheating, and also under the Karnataka Protection of Interest Depositors in Financial Establishments Act and the Banning of Unregulated Deposit Schemes Act.
Mr. Patil, in his complaint, said that based on complaints from investors, he had deputed a district convener to probe the matter and submit a report.
The society had sanctioned loans to investors and to firms belonging to the members of the society without following due diligence and security measures required to sanction the loan of ₹64.6 crore during 2020-21. Many of the loans have defaulted and the society is unable to recover them. This has a cascading effect on returning the dues to the investors, the complaint said.
An inquiry also revealed the involvement of former directors, CEOs and board members, which needs a detailed investigation, Mr. Patil, said.
