Former secretary of Cooperative Credit Society arrested for fraud
The Economic Offences Wing arrested a former secretary of a Cooperative Credit Society for allegedly embezzling over ₹3 crore. The accused reportedly sanctioned illegal loans to family members and misused a crop loan waiver program.
Why it matters
The case highlights corruption risks within local cooperative financial institutions and the importance of audit oversight.
The Economic Offences Wing has arrested a former secretary of a Cooperative Credit Society. Shanmugavelu had served as Secretary of V. Ammapatti Primary Agricultural Cooperative Credit Society in Vedasandur.
An audit revealed that Shanmugavelu allegedly committed several irregularities. The charges against him, included illegally sanctioning loans worth several lakhs to his family members, including his wife, daughter, son, and relatives.
It was discovered that he had committed fraud amounting to over ₹3 crore for personal gains. He had devised a scheme to misuse the crop loan waiver programme by acting in the farmers’ names without their knowledge.
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