BELAGAVI
In a move which could have significant consequences to severalthousands of customers in Goa, Karnataka and Maharashtra, the Karnatakagovernment has initiated action against the Lokmanya Multipurpose Co-op SocietyLtd (LMCS), after accusing it of irregularities.
In a notification dated July 17, but released in a section ofthe Karnataka media on Thursday, Karnataka Under Secretary at the RevenueDepartment (Special Cell) Vijay D S said the government had considered thereports of the District Magistrate, i.e Deputy Commissioner, Belagavi and hadinvestigated the complaints of depositors.
“It has come to the notice of the Government that the LMCSBelagavi are involved in fraudulent transactions by clandestinely and illegallycollecting deposits or money from the general public and thereafter have failedto return the same either after maturity or on demand made by the depositors orcomplainants with promised interest and other assured benefits.”
“It has further come to the notice of the government that LMCSBelagavi and people associated with them have been acquiring lands, movable andimmovable properties, cash and others from and out of the deposits or money socollected, from the depositors or complainants and thereby deviating from theintended purposes of accepting the deposits or money.”
Vijay D S said the government “has reason to believe that theactions of LMCS Belagavi and people associated with them are acting in anddetrimental to the interest of the depositors or complainants whose intentionwas to defraud the innocent depositors, and it has become necessary to protectthe interest of the depositors of LMCS Belagavi.”
Stating that the government had considered the report of theDistrict Magistrate, i.e Deputy Commissioner, Belagavi, and was satisfied aboutthe urgent need to protect the interest of the depositors, Vijay D S said“...in order to protect the interest of depositors it is necessary to attachthe immovable properties believed to belong to LMCS Belagavi.”
The notification stated that all aforesaid properties from thedate of publication of the order in the Official Gazette shall forthwith vestwith the competent authority, who has been appointed by the Government pendingfurther orders from the Special Court.
The LMCS has a significant presence in Goa and its websitereveals branches are located in Panaji, Margao, Vasco, Mapusa, Ponda, Porvorim,Sankhali, Valpoi, Bicholim, Usgao, Agarwada, Arambol, Calangute, Taleigao,Merces, Corlim, Marcela, Ghoteli, Bandora, Honda, Aldona, Dhargal, Assonora,Mangueshi, Curchorem, Canacona, Cuncolim, Navelim, Shiroda, Quepem, Colva,Velim, Dabolim, Benaulim, Majorda, Verna, Sanguem, Raia and Chinchinim.
No irregularity, K’takagovt has no jurisdiction: Coop society
BELAGAVI: Hitting back at the Karnataka government’snotification seeking to attach some of its properties, the LokmanyaMultipurpose Co-operative Society (LMCS) in Belagavi has insisted that therehas been not a single instance where the society was not able to repay anydepositor and added that the Karnataka government had no jurisdiction over theLMCS.
Responding to the notification in a letter circulated by thesociety on Thursday, LMCS CEO Abhjit Dixit said “the Karnataka governmentapparently has no jurisdiction over the LMCS, as we are registered with theCentral Registrar.”
“Also there has not been a single instance wherein we have notbeen able to repay any depositor, his deposit or interest thereon, in sharpcontrast to the notification. Also, the Deputy Registrar of Coop Societies,Belagavi, has issued a certificate stating that there are no complaints by anydepositors for the non-repayment of the deposits or interest thereon.”
“Also, it is alleged that we are illegally buying lands out ofthe depositor’s money. We clarify that we are investing in lands as per our byelaws and we are permitted to do so and there is no violation of the bye law,”stated Dixit.
“We also have to state that we have received noletter/correspondence from the government in this regard and are surprised tosee the notification in the newspaper.”
“We have approached Karnataka High Court in this regard and areconfident that the Court will give the verdict in our favour,” he added.
Meanwhile, Dixit told The Goan that transactions in allbranches of the LMCS in Belagavi were being carried out normally.
