Police in Pune have registered a serious case of cheating and criminal breach of trust against the manager of a credit cooperative society. The official is accused of misappropriating a staggering sum of Rs 1 crore from the society's Shivajinagar branch over a four-year period, spanning from 2015 to 2019.
Audit Exposes Systemic Loan Fraud
The scandal came to light after a government auditor filed a formal complaint with the Shivajinagar police station on Monday. The subsequent audit investigation revealed a deeply flawed process. According to Senior Inspector Mahesh Bolkotgi of Shivajinagar police, the manager's core responsibilities included verifying daily transactions, maintaining registers, and critically, checking the credentials of individuals applying for loans and their witnesses.
However, the audit found that the manager, in collusion with some other employees, completely bypassed these mandatory procedures. "The manager prepared fake and fabricated proposals and took loans without checking witnesses and recording details," Senior Inspector Bolkotgi told the media. This systematic failure allowed the fraud to continue undetected for years.
Complete Breakdown in Recovery Process
The fallout from the fraudulent loan sanctions was compounded by a total collapse in the follow-up mechanism. The credit society neither received EMIs for these illicit loans nor did it follow up with the supposed customers for repayment. This glaring inaction eventually triggered the involvement of the state cooperative department, which issued direct orders to probe the entire matter.
The audit report served as the definitive evidence, confirming the massive financial misappropriation. "The audit report confirmed there was misappropriation of Rs1 crore," stated Bolkotgi. While the exact trail of the money remains unclear, preliminary suspicions point directly towards the manager. "It is not known where the money went and to which beneficiaries. Prima facie, it is suspected that the manager received the benefits," the senior inspector added.
Legal Repercussions and Ongoing Investigation
Based on the auditor's complaint and the damning audit findings, the Shivajinagar police have officially registered a First Information Report (FIR). The case invokes sections for cheating and criminal breach of trust. The police investigation is now actively working to uncover the full extent of the scam, trace the flow of the misappropriated funds, and identify all individuals involved beyond the named manager.
This incident raises serious questions about internal controls and governance within cooperative financial institutions. It highlights how the violation of basic due diligence protocols by trusted officials can lead to substantial losses, eroding public trust in such community-based savings and credit systems.
