Odisha Government Uncovers Massive Fund Misappropriation in Cooperative Banks

The Odisha government has identified a misappropriation of Rs 224.61 crore across various cooperative banks. Audits revealed 1,704 individuals involved, with initial recovery efforts underway. Management committees of key cooperative entities have been suspended due to the irregularities.

The Odisha government has detected a sprawling misappropriation of Rs 224.61 crore in different cooperative banks across the state, Cooperation Minister Pradeep Bal Samanta revealed to the Assembly on Wednesday.

According to Samanta, the irregularities were uncovered during audits of the Odisha State Cooperative Bank (OSCB), 17 Central Cooperative Banks (CCBs), and 13 Urban Cooperative Banks (UCBs).

Responding to a query from Congress member Tara Prasad Bahinipati, Samanta disclosed that a total of 1,704 individuals have been implicated in the financial misconduct. The government has initiated surcharge proceedings to recover the funds, successfully realising Rs 16.63 crore and issuing orders to recover an additional Rs 30.73 crore from 706 individuals involved in the fraud.

Furthermore, under the Odisha Cooperative Societies Act, 1962, the Odisha government has suspended the management committees of both the Odisha State Cooperative Bank Ltd and Odisha Cooperative Housing Corporations Ltd. The suspension orders, issued on Wednesday, cited gross irregularities and misappropriation of public money. The Cooperation Department’s Secretary, along with additional secretary Subhra Mohanty, will now manage the OSCB and Odisha Cooperative Housing Corporations’ operations, respectively.