Financial irregularities by Cooperative Society
Excelsior Correspondent
SRINAGAR, Feb 9: High Court has closed the Public Interest Litigation with regard to financial irregularities by the Cooperative Society (Rural Development Multipurpose Cooperative Limited) by accepting deposits from the public without obtaining prior permission from the Reserve Bank of India and directed the Crime Branch to conclude the investigation into the matter and report the concerned Magistrate about the same.
The PIL was filed in the year 2019 alleging therein that the Cooperative Society – Rural Development Multipurpose Cooperative Limited has committed financial irregularities by accepting deposits from the public without obtaining prior permission from the Reserve Bank of India (RBI) as is necessary in banking laws.
The reports of the Chartered Accountants of the said society itself raise objections in this regard but no action was taken and the petitioners have made representations to the Lieutenant Governor as well as to the PMO.
Senior Counsel Rahul Pant submitted that the court has directed for further investigation in the matter and that the investigations are still on and even the details of investigations which have so far been done have been indicated in the objections filed by Senior Superintendent of Police, Crime Branch.
The Division Bench of Chief Justice Pankaj Mithal and Justice Ali Mohammad Magrey said since the matter is under investigation of CB and felt it appropriate not to intervene in the matter.
The petitioners, court added, by means of the instant petition basically seek initiation of thorough investigations into the working of Cooperative Society and the investigation is being conducted against the erring Society pursuant to the FIR registered against it.
“We direct for closing this matter at this stage with liberty to the petitioners to take appropriate steps once the investigation is completed and directed the investigating agency to complete the investigation at the earliest and to submit the report accordingly before the Magistrate concerned. Parties are free to take recourse to the proceedings before the court concerned in respect of the aforesaid investigation”, Court concluded.
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