Site news

MALLESHWARAM CO-OPERATIVE SOCIETY&BUILDING ILLEGALLY DEMOLISHED BY LIQUIDATOR

 
 
Picture of System Administrator
MALLESHWARAM CO-OPERATIVE SOCIETY&BUILDING ILLEGALLY DEMOLISHED BY LIQUIDATOR
by System Administrator - Friday, 6 March 2015, 4:23 AM
 

By : M.S.Yatnatti Editor and Video Journalist Bangaluru :No respect to lokayukta .Despite Loka No BCD/2930/2014case is pending with Lokayukta M.D.Narsimha Murthy Joint Registrar co-operative Societies and Liquidator started demolishing illegally head office building of Malleshwaram Co-operative Society Limited . One property worth 40 crore was transferred to RCS without any authority of law to RCS for Redeemable share amount/loan of 10.70 lakhs in gross violation of any law in operation. The sanction orders from 1-9 from the year 1962 to 1990 as per the list for total amount of Rs 10,70,000/- is very clear and it were given as loan for specific purpose and not as share amount . The orders sheet cleanly states that 10,70,000/- were supposed to be recovered from Malleshwaram Co-operative Society Limitedfrom 30-03-1996. The last line states that "repayment to be commenced from 30-03-1996 .Then it is redeemable share /loan given by government wherefore question of allotment of shares does not arise and another one property was still remains untouched.The deputy Director of co-operative audit Bangalore had made several observations on audited accounts submitted by the liquidator in respect of Malleshwaram Co-operative Society Limited which were not complied by liquidator. In one the observation it made it cleared that 10.70 lakhs it was not the share amount but it was redeembale share amount /loan but it need to be given back in ten installments as it was given from 1962 -to- 1990 with a condition that it will be returned after 15 years in 10 installments and audit observation was made to and directed liquidator to make arrangement to return 10.70 lakhs immediately out of accounts of Malleshwaram Co-operative Society Limited. Instead of remitting back amount of 10.70 lakhs which is available with the accounts of Malleshwaram Co-operative Society Limited liquidator did committed blunder and fraud of selling 40 crore rupees property to RCS in grave violation of observations of audit report.

Liquidator ofMalleshwaram Co-operative Society Limited as per Law and Liquidation guidelines should have sold all properties belonging to Malleshwaram Co-operative Society Limited at Maleshwaram: 8 the cross Margoosa RoadMaleshwaram-560003 and Shrirampuram:7th main 7th cross shrirampuram Bangalore-560021 and Sheshadripuram : Govid Rao street 1st main road Bangalore-560020 and Yeshvantapur : No 19/2 2nd main Road RMC Yard Bangalore -560022in Transparent Auction as all above properties worth several crore and paid to employees demand and share holders as per their share holding which liquidatorhas not done so far since 14 years andhas committedfraud under 420 and tress pass under 448 and criminal intimidation under 505 of IPC. Instead of selling the properties in Auction it has been alleged that it were sold on mutual sales with huge undervaluation (Shrirampuramand Sheshadripuram) andby transferring the Maleshwaram: 8 the cross Margoosa RoadMaleshwaram-560003 to RCSliquidator has committed fraud against Malleshwaram Co-operative Society Limited as liquidator has no authority to transfer the properties to anybody under the Act or Circulars' and guidelines. In the proposal sent to government by liquidator to transfer the Maleshwaram: 8 the cross Margoosa RoadMaleshwaram-560003 to RCS(which is illegal ) it said that Govt had 10.70 lakhs redeemable sharesBut fact is thattotal shares paid up capital from 6661 members total shares (including Government ) were only 15 76 694.25 rupees .So question of Government having 10.70 lakhs shares does not arise .It is said that 10.70 lakhs was given as Redeemable share loan to society some time backbefore liquidation. Government cannot act like loan shark to usurp the property of Malleshwaram Co-operative Society Limited(in liquidation) .He has only authority to sell the assets and clear the liabilities at once. No law permits to transfer the assets to anybody let it be government or anybody. Assets have to be sold as per circular dated 13-07-1992 at market value and transparent auctions and clear liabilities at once. Money & assets totally about 40 Crore available does not belong to liquidator or the government. "it belongs to malleshwaram co-operative society limited and its 6661 share holders then why liquidators stomach is aching to give about Rs 3.3 Crore money to 66 employees (Rs 5 lakhs each as total onetime bonus for the year 1997 -1998 1998-1999 1999-to 2000 enhancement in gratuity and PF and PF Pension and salary) out of 40 crore assets/cash available as demanded by them.66 employees were back boon in creating these assets.Joint Registrar co-operative Societies & Liquidator Malleshwaram Co-operative Society Limited is guilty of misconduct and committed grave irregularities and blatant violations in respect of liquidating Malleshwaram Co-operative Society Limited. Liquidator has not followed the one time process of liquidation as per Act and as per law and guidelines for liquidation. Liquidator does not require 14 years to liquidate a society; all the liquidators and registrar of societies need to tell reasons for this delay and injustice. For this a lokayukta probe need be to conducted and Joint Registrar co-operative Societies & Liquidator need to be probed for lapses as he has committed blunders and done injustice to 66 employees of Malleshwaram Co-Operative Society Limited who were the root cause of spectacular growth and creating cash and assets of 40 crore today, Liquidator without doing his job of liquidating is sitting eating FAT salary out of money created by these 66 employees of Malleshwaram Co-Operative Society Limited.He did nothing except taking salary fromMalleshwaram Co-Operative Society Limited in 14 years.Circumstances under which a cooperative society is wound up/liquidated: A cooperative society is considered for liquidation when it is established that the society is not functioning in accordance with the cooperative principle and is no longer working for achievement of the objects for which it was registered. The co-operative society ceases to exist on the date shown in the certificate of dissolution, which shall not be later than seven hundred and thirty days after the appointment of the liquidator. Subject to the provisions after paying or making adequate provision for all claims against the co-operative society, the liquidator shall apply to the Registrar for approval of his final accounts and for permission to distribute in cash or in kind, the remaining property of the co-operative society in accordance with the rules.