PIL filed against GMCSL
GUJARAT MERCANTILE Credit Sahkarita Limited Amanatdar Peedit Sangh has filed public interest litigation (PIL) against Gujarat Mercantile Credit Sahkarita Limited (GMCSL) for conspiring to misappropriate their Rs 128 crore deposit money. The other PIL respondents include MP Government through district collector, Registrar, Cooperative Societies, Superintendent of Police and Central Kotwali thana in-charge.india Updated: Feb 24, 2006 14:53 IST
GUJARAT MERCANTILE Credit Sahkarita Limited Amanatdar Peedit Sangh has filed public interest litigation (PIL) against Gujarat Mercantile Credit Sahkarita Limited (GMCSL) for conspiring to misappropriate their Rs 128 crore deposit money.
The other PIL respondents include MP Government through district collector, Registrar, Cooperative Societies, Superintendent of Police and Central Kotwali thana in-charge.
Peedit Sangh convener Dhirendra K Chaturvedi through counsel Manohar Dalal has appealed to the HC to confiscate the property of GMCSL board of directors (BoD) as security against their money deposited with the cooperative.
The litigant has also asked that the account of overdraft beneficiaries be seized and Rs 128 crore be recovered from BoD. Making another submission, petitioner has asked the court to order appointment of special police officer to look into allegations made in the FIR filed at Central Kotwali last month. PIL has also appealed for penal action against Cooperative Department officials for being party to the diversion of their money.
The petitioner said that Rs 103 crore of depositors’ money was given to over 418 persons including relatives and friends of BoD as overdraft while Rs 33.55 crore was loaned off to 478 persons without taking adequate security.
According to PIL, Corporation (Area) Basketball Trust chairman Surendra Singh Garha was granted a loan of Rs 2.27 crore from the cooperative with an assurance to hand over the three-acre Basketball Complex ground floor to OTG Group and GMCSL. The Government gave the land valued at Rs 20 crore on annual lease of Rs 3 to develop sports facilities.
The accused, PIL added, floated Mahagujarat Credit Sahkarita Limited that received Rs 17.86 crore from GMCSL Y N Road branch and Rs 20.79 crore from MG Road branch. The litigant has alleged that Cooperative Department and police avoided action against GMCSL knowing that depositors’ money was siphoned off to fictitious accounts.
GMCSL has 22,600 account holders who have deposited Rs 127.31 crore. The cooperative has given loan worth Rs 138.41 crore to 972 persons that include 16 large loanees.
Besides, 30 credit cooperative institutions having 54,000 account holders were invited to invest crores of rupees at GMCSL by promising a hefty monthly sum to their office bearers as commission.
The office bearers of another 33 cooperatives were given similar allurement. Thus the money of over 80,000 depositors is presently at stake, PIL added.