PANAJI:
The Economic Offences Cell has arrested four former directors of the Ashtagandha Urban Credit Cooperative Society Ltd in connection with Rs 11.28 crore financial misappropriation case.
The case, filed based on the complaint of Chairman of the Committee of Administrators for the Society Mangesh Phadte - appointed by the Registrar of Cooperative Societies - alleged that prior to July 14, 2023, 11 persons including former board members, officers and Chief Executive Officers operated in collusion to allegedly defraud the Society and its depositors.
The complaint alleged that the accused, with dishonest intent, sanctioned false loans backed by fabricated documents, conducted unauthorised financial activities with non-members outside the legal area of operation, and carried out illegal and unauthorised fund withdrawals.
It further alleged that the accused transferred Society funds into their personal accounts and routinely flouted provisions of the Goa Co-operative Societies Act, the Rules, and the Society’s own bye-laws.
This ultimately resulted in the Society’s failure to repay deposits to members and depositors, causing financial losses amounting to Rs 11,28,93,213.
