Judicial inquiry into Goa State Co-operative Bank multi-crore scams decided anonymously on the floor of house

The Goa State Co-Operative Bank Limited is running into the huge losses due to the misappropriations done by recovery officers and other directors of the bank claimed the sources. In one such case the property worth Rs. 80 crore was sold for just 1.3 crores by the recovery officials in alliance with the directors of the bank. The sources claimed that this is just a tip of an iceberg. Read the complete report here.

[su_expand more_text=”READ MORE” less_text=” ” height=”0″ hide_less=”yes” link_style=”button” link_align=”center”]Today the Fatorda legislature Mr. Vijay Sardesai made an allegation on the floor of the house stating that the Goa State Co-operative Bank that is running into the hundreds of crores of rupees loss due to the misappropriations did by some directors and recovery officials by selling the properties at much lower rates than the market prices. He presented an example of one such property that was valued at rupees 8 crores in the year 1995 was sold in the year 2011 for just Rs. 1.3 crore while the present valuation of the same is considered to be around 80 crore rupees, thus making huge losses to the bank.

Mr. Sardesai demanded the motive behind selling said property at such a low rates. The entire house including the Chief Minister Laxmikant Parsekar supported his allegations by taking an anonymous decision of conducting the judicial inquiry into the entire matter. “I also feel that there is something wrong going on in the bank. If all the members are agreed I will take the action against the bank officials who are guilty in this case and also initiate the judicial inquiry into the entire matter,” said the chief minister Parsekar.

This is not today’s matter but pending for years. In year 2013 the ACB (Anti-Corruption Branch) of Goa Directorate of Vigilance has registered two cases of fraud against the former managing director and the former general manager (legal) of Goa State Cooperative Bank Ltd.; the former Chief Executive Officer (CEO) of Goa State Cooperative Union Ltd., and the former members of the board of directors of cooperative institutions. According to an official of the State Vigilance Department on Tuesday, the cases pertain to the disposal of properties mortgaged to the bank and sale of the ground floor belonging to the bank building situated in the city.

This report was published by national newspaper The Hindu on its June 20, 2013, edition. According to that, the government had referred the cases to the Vigilance Department after the ruling Bharatiya Janata Party members alleged a scam in these transactions.


In another case, the bank had released the loan of Rs. 40 lakh to one of the beneficiary in a fraudulent manner in one of the bank’s branch to purchase the electronic equipment but according to the sources, the beneficiary did not make any purchase of the equipment and till date he did not repay single rupees of the loan amount granted to him by the bank. Police investigations revealed that the beneficiary did not buy any electronic goods for which he had obtained the loan from the bank.

On July 29, 216 the opposition MLAs, Vijay Sardesai (Fatorda), Digamber Kamat (Margao) and Rohan Khaunte (Porvorim) made allegations in the house about the ongoing misappropriations going on in Goa State Co-operative Bank Ltd. The opposition alleged the Existence of a scam in the tendering process relating to the accounts software procurements by the Goa State Co-operative Bank Ltd, which could result in lack of security to banking transactions, the Opposition benches in the state legislative assembly on Thursday said that balance sheets could be wiped out, non-performing assets disappear and a breach could take place during the electronic transfer of money, just as the government assured to carry out a departmental inquiry into the same, through the registrar of co-operative societies.

The above incident shows that despite ongoing police inquiries in the various misappropriation cases against the bank the further misappropriations are going on in a regular manner. But today’s decision of initiating the judicial inquiry into the matter might put some limitations on the ongoing embezzlements in the bank. We will keep you updated with the further details as it progresses in the said bank fraud cases. If you wish to share your views kindly go ahead.

Source: Various sources  


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