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Co-operatives Commissioner orders audit of Muslim Co-op Bank in Pune

The audit has been ordered after official complaints against the bank were lodged with the Reserve Bank of India (RBI) and state co-operatives department by bank director Imtiaz Shikilkar and SM Iqbal alleging that there was a fraud worth ₹100 to ₹110 crores in the bank in the last eight to 10 years and other irregularities.

pune Updated: Jan 13, 2018 21:31 IST
Nadeem Inamdar
Nadeem Inamdar
Hindustan Times, Pune
Pune,Muslim Co-op Bank,Co-operatives Commissioner
People protest by the Muslim co-operative bank ltd- administrative office at Bhavani Peth in Pune.(RAHUL RAUT/HT PHOTO)

Co-operatives commissioner and registrar, Dr Vijay Zade has ordered an audit of the Muslim Co-operative Bank run by educationist PA Inamdar, who is also its chairman.

The audit has been ordered after official complaints against the bank were lodged with the Reserve Bank of India (RBI) and state co-operatives department by bank director Imtiaz Shikilkar and SM Iqbal alleging that there was a fraud worth ₹100 to ₹110 crores in the bank in the last eight to 10 years and other irregularities. However, Inamdar has denied all the charges and said that he has been exonerated from the charges citing the co-operatives department.

Zade in his order dated November 20, 2017 had under Maharashtra Co-operative Act 1960 section 81 (3) appointed district special auditor, co-operatives society (Class I) to conduct a bank audit and also a detailed probe into the complaints made by the two directors.

The order set December 31, 2017 as the deadline for the submission of the audit report. Bank directors Shikilkar and Iqbal during a media interaction at Pune Patrakar Sangh on January 10, shared copies of the audit orders of the co-operatives commissioner and registrar and said that audit was still underway and the scam would be unveiled before the public soon.

They stated that a preliminary inquiry was conducted into the complaints given against the bank which has brought out the irregularities after which the co-operatives commissioner and registrar found merit in our cases and ordered an audit into the large-scale misappropriation in the bank.

Responding to the allegations, PA Inamdar said there are no evidence against him.

“ All the findings are in our favour. The registrar has asked for some verification,” said Inamdar.

According to Inamdar, the complainants went to the RBI with a complaint but the authorities clearly told them that they were not at all connected with the issue and asked them to approach the co-operatives department. The registrar asked the deputy registrar to inquire further and submit an inquiry report.

The two directors including a section of bank members, depositors and concerned citizens staged a protest against the alleged mismanagement of finances at the Muslim co-operative bank office in Bhavani Peth on October 9 last year. Some of the main allegations include include ₹110 crore fraud in the past 10 years.

50 per cent of incentives and adhoc amount given to employees taken back by the bank and yearly payment between ₹70-₹80 lakh in the name of non-existent security guards siphoned each year, they alleged.

The complainants said that the inquiry report which Inamdar was claiming to be in his favour was incorrect and the audit has been ordered after concrete proof was submitted to the Commissioner directly and not to the junior officers of the department.

First Published: Jan 13, 2018 18:26 IST