AG office unable to help co-op depositors
THE OFFICE of Accountant General (AG) at Gwalior has refused help to depositors at Indore who approached it with complaints of irregularities in the audit of credit cooperatives where they have invested heavily.india Updated: Feb 18, 2006 14:03 IST
THE OFFICE of Accountant General (AG) at Gwalior has refused help to depositors at Indore who approached it with complaints of irregularities in the audit of credit cooperatives where they have invested heavily.
The Gwalior office told them to seek mandate through legislature or judiciary if they wanted to move AG or The Comptroller and Auditor General of India for tracing the monetary flips of credit cooperatives. The AG office informed them that it undertakes financial appraisal of an organisation only when Government capital is involved.
The AG officials, nevertheless, confessed prevalence of large-scale irregularities in the audit of cooperatives. They said that the AG has recommended steps for restitution in its report to the State Government.
“Its true that depositors are losing money and its equally correct that our audit objections can’t help the distressed depositors directly but Registrar, Cooperative Societies, can take suo moto steps to prevent loss of public funds. Its his job,” a senior official wishing anonymity told Hindustan Times over phone from Gwalior.
A couple of High Court judgements, defining the duty of Registrar, prove this point. A High Court order (1987 RN 137 para 9) remarks that Registrar is a friend, philosopher and guide whose function is to strengthen cooperative movement so that it can reduce economic disparity and contribute to the development of State.
It’s also his duty, the High Court order said, to exercise his intellect in making the law and regulations more effective and not vice-versa. “The cooperative movement has to operate within the defined limits,” Court maintained.