Cooperative credit society chairman, others booked for duping depositors

The chairman and other board members of a cooperative credit society in Mumbai have been booked for allegedly defrauding depositors of crores of rupees. They promised high returns but defaulted on payments and diverted money to real estate projects. Several depositors have filed complaints.

MUMBAI: The chairman and other office-bearers of a cooperative credit society, Mumbai Nagrik Sahakari Patsanstha, have been booked on Friday night for allegedly duping several depositors to the tune of crores of rupees on promise of high returns.

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According to the Kalachowki police, the accused include society chairman Shantaram Tupe, vice-chairman Amish Bhalerao, administrator Usha Chavan and others on the board of directors of the society.

“The accused promised huge returns on investments. They initially created confidence among the people and later started defaulting on payments despite fixed deposits (FDs) maturing,” a police officer said.

They distributed huge loans, which they could not recover and diverted money to various real estate projects, thus creating a fund deficit, the police officer added. The cooperative credit society had nine branches, but eight of them were shut.

The depositors then held several meetings with the cooperative credit society officials and gave them six months—till June—to recover their outstanding loans and return the money to the depositors and investors.

Later, three depositors approached the police and registered a case that they have lost ₹1.41 crore in the fraud. “Presently, there are eight complainants and more are likely to approach us after coming to know about the FIR,” the police said, adding several middle and lower middle-income people have invested with the cooperative society.

A case has been registered under section 420 (cheating) and 406 (criminal breach of trust) of the Indian Penal Code and relevant sections of the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999, DCP Prashant Kadam of Zone IV said.