FIR against GMCC chairman, MD
GUJARAT MERCANTILE Credit Sahakarita Limited Amanatdar Peedit Sangh has filed a First Information Report (FIR) at Central Kotwali police station against Gujarat Mercantile Credit Cooperative (GMCC) Limited Chairman O T Gandhi, its Managing Director Janak Gandhi and others under Sections 420, 467, 468, 471, 406, 408 and 120 B of IPC for conspiring to misappropriate their deposit money worth Rs 127 crore.india Updated: Jan 12, 2006 01:04 IST
GUJARAT MERCANTILE Credit Sahakarita Limited Amanatdar Peedit Sangh has filed a First Information Report (FIR) at Central Kotwali police station against Gujarat Mercantile Credit Cooperative (GMCC) Limited Chairman O T Gandhi, its Managing Director Janak Gandhi and others under Sections 420, 467, 468, 471, 406, 408 and 120 B of IPC for conspiring to misappropriate their deposit money worth Rs 127 crore.
Corporation (Area) Basketball Trust Chairman Surendra Singh Garha, its trustees Abhay Chhajlani, Avinash Anand, Bhupendra Bandi, Cooperative Department officials V S Baskel, Sushil Mishra and V P Maran, former District Collector Mohammed Suleman and Registrar, Public Trust, Indore, have also been made accused in the complaint.
Others made party in the FIR include Gujarat Mercantile Vice-chairpersons Nagin Bhai Kothari and ex-Barwani princess Dilhar Kumari, Directors Narhari Patel, Haroon Bhai A Sattar, Himmatlal Badalia, Kirti Bhai Thakur and Diwakar Shah.
Peedit Sangh president Udai Kumar Jaiswal and coordinator Dhirendra Kumar Chaturvedi in their complaint said that depositors’ money worth Rs 103 crore was siphoned off to over 400 relatives and friends of Gandhis as over draft and cash credit, which is a blatant misuse of their hard-earned money.
This, they said, was revealed from the copy of letter, which Janak Gandhi sent to Registrar, Cooperative Societies at Bhopal. The letter contains the name of loanees but names of persons who received overdrafts are missing. The complaint adds that Board of Directors (BoD) offered financial assistance to 418 persons without taking any collateral security.
Demanding police action against the accused to safeguard their money, the depositors’ association alleged that Gujarat Mercantile invited deposits from members and non-members by declaring attractive schemes through advertisements with an intention to misuse it.
They collected a whopping Rs 127 crore by offering high interest rates, Jaiswal said. Citing example, complainant Chaturvedi said he was offered 11.5 per cent interest on deposit of Rs 1 lakh on December 18, 2002 with an assurance that the sum would be returned along with interest of Rs 43,500 on December 18, 2005.
When the complainant approached BoD for reimbursement of Rs 1.34 lakh in December 2005, he was told that the money has been spent in construction of Basketball Complex. He was also told that the Cooperative would be unable to pay unless it receives Rs 103 crore given as OD to different persons.
The Board, however, assured Chaturvedi and others of making payment soon. In the meantime, district administration took possession of Basketball Complex on December 29, 2005.
According to the complaint, Garha obtained a loan of Rs 2.25 crore from the cooperative body with an assurance to hand over the three-acre Basketball Complex ground floor (survey number 120/1, 120/2) to OTG Group and Gujarat Mercantile Credit Sahkarita Ltd. The loan was taken for Garha Auto Distributors and Garha Gears that are facing financial constraints, FIR said.
Accusing government officials of being party to the fraud, the FIR charged Cooperative Department officials with failing to keep a check over the activities of Gujarat Mercantile, though they are empowered to act under MP Swayatta Sahkarita Adhiniyam 1999.
“The officials didn’t act despite complaints made to them because relatives of Vaskel, Mishra and Maran are also beneficiaries of the overdraft,” plaint remarked.
Peedit Sangh has also held Public Trust Registrar responsible for not disclosing the fact that action is pending against Basketball Trust under Section 182 of MP Land Revenue Code.
The depositors have charged the Cooperative with stalling payment from their savings account, matured fixed deposits and non-deliverance of contractual services since January 2005.