The Madurai Milk Cooperative Credit Society has come under the scanner for an alleged scam involving Rs 7.9 crore funds between 2017 and 2019. The officer bearers of the milk cooperation have defrauded depositors by misappropriating funds in ways including failing to maintain a record of accounts and closing the bond before the maturity time without informing the depositors.
The scam came to light in January following which a complaint was registered with the police. Two officer bearers, Secretary Mathalaiyappan and treasurer Jagadeewaran have been arrested by the commercial crime investigating wing, said reports. Two other office bearers, deputy secretary RG Gangadharan and president Pandi, are absconding and the police are on a look out for the accused. The four officer bearers alone have duped Rs 6.4 crore of funds.
However, 17 people, who have so far held various posts in the association, have been named in the audit report under Section 87 of Tamil Nadu Cooperative Society Act, said a report.
The scam took place for three years between 2017 and 2019 where several office bearers have been accused of duping the funds by closing the bond before the time of maturity without knowledge of the people, failing to maintain a record of the account and providing funds under the name of the same person twice.
In January, the cooperative society could not pay the sum to depositors and asked them to extend the deposit period. However, the depositors started protesting following which the cooperative department took action in the issue.