Deputy registrar to probe scam in co-op society headed by filmmaker Appugol

The Department of Cooperative Societies has ordered an inquiry under Section 64 of the Karnataka Cooperative Societies Act, 1959, against the Krantiveer Sangolli Rayanna Urban Cooperative Society (KSRUCS), in view of the large-scale financial irregularities.

The Joint Registrar of Cooperative Societies (Urban Bank Division) Mohammad Zaffarullah Khan, in the order dated September 16, directed the deputy registrar of cooperative societies, Belagavi, to conduct the inquiry.

The deputy registrar has been asked to submit a report within two months.
Khan said complaints have been received against KSRUCS, saying it had been dodging and cheating the depositors, refusing to return their deposits even after the maturity period.

The investigating officer has been asked to gather information on the deposits collected from members and non-members from the period 2011-12 to 2016-17 and the reasons for refusing to return the deposits on maturity.

The investigating officer will look into the lapses while advancing loans and violation of the sub-laws, of the Cooperative Societies Act and about the failure in recovering the loans.

The officer has been directed to inquire into the purchase of assets by the Society without prerequisite approvals, about the funds utilised to purchase immovable properties in violation of the laws and donations made by the Society.

The Karnataka High Court stay on the FIR filed against Society chairman Anand Appugol has come as a relief for him.

Appugol was remanded in judicial custody after four days of police custody ended on Saturday.

This comes in the wake of the Dharwad Bench of the High Court granting a stay on the police investigation on the complaint filed by the Assistant Registrar of Cooperative Society.

Appugol has filed a bail petition before the 3rd JMFC court. The bail petition will come up for hearing on Monday. He has now been lodged in the central prison, Hindalga.