Credit society secretary held for ‘misappropriating’ ₹1.25 crore
The secretary of a Teachers’ Co-operative Thrift and Credit Society in Erode has been arrested for allegedly misappropriating ₹1.25 crore. Police are currently searching for two other employees involved in the financial irregularities.
Why it matters
This case underscores the risks of financial mismanagement within local cooperative societies that manage the savings of public sector employees.
The Erode District Crime Investigation Wing police arrested the secretary of a Teachers’ Co-operative Thrift and Credit Society in Chennimalai for allegedly misappropriating ₹1.25 crore belonging to the society.
The credit society has more than 100 teachers as members, who deposit their savings with it and avail themselves of loans at low interest rates.
The secretary, Balasubramaniam (54) of Minnangadu in Chennimalai, allegedly collected deposits from teachers but did not credit them to society accounts. He also allegedly failed to enter into accounts the loan repayments made by members, police said.
After some members noticed the irregularities, they lodged a complaint with the Regional Deputy Registrar of Co-operative Societies. Following directions from the Joint Registrar, an audit team examined the society’s accounts and detected alleged misappropriation of ₹1.25 crore.
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