When one of the presidents of a credit cooperative society in Dakshina Kannada district invested in properties worth Rs 100 crore in Mumbai last year, it did not go unnoticed by enforcement authorities. For that matter, when the head of the money lending society demands a commission in the loan that he sanctions, it definitely comes under the authorities surveillance. Following an Enforcement Directorate survey, income tax department sleuths searched three cooperative societies to find that the society heads were more into real estate and lending for personal commissions through which they had enchanced their personal income.
A four-day search on South Canara District Central Cooperative Bank (SCDCC), Sri Ramakrishna Credit Cooperative Society, both in Mangaluru, Badagabettu Credit Cooperative Society in Udupi and the residential premises of the society presidents resulted in the declaration of “unexplainable income” to a tune of Rs 200 crore. This includes around Rs 80 crore personal income of one of the society directors.
A large posse of taxmen from Bengaluru and Goa swooped on the societies and also the residence of SCDCC president MN Rajendra Kumar in Karkala last Wednesday. This time, it was not to look out for the non-PAN transactions nor the huge deposits that have gone unreported by the societies to the I-T department, but to go into the documents of the personal transactions of the society heads.
The wealth accumulation saga of one of the presidents is interesting -- papers relating to huge investments in real estate outside of Mangaluru were found. Interestingly, he has also been misusing his position and seeking undue favours from various customers of the bank. “Loans are sanctioned to the society employees at higher rates and their properties are pledged. We found that the employees had taken loans from various other banks to repay the loan of the society where they work. The president charges around 20% commission on every loan transaction and some of his cronies are the witnesses during the loan sanctioning process who also demand bribes for their presence,” explained sources.
Further, the taxmen have found that the president has amassed huge properties in and around Mumbai, Mangaluru and Bengaluru, all through illegal means. “He has been the president for more than a decade and is close to many prominent politicians who using his bank to park their unaccounted wealth. He has cheated small-time businessmen and employees of his own society. After scrutiny of papers, he admitted to unexplainable income of around Rs 80 crore,” sources added.
Taxmen have been searching various credit cooperative societies and banks since a few months, especially post demonetisation in November last to track unreported high transactions, huge cash deposits and illegal exchange of old currencies into new notes. Upto December 2016, nearly 14 inspection of banks were carried out and transactions over Rs 10 lakh were under the scanner.
A four-day search on South Canara District Central Cooperative Bank (SCDCC), Sri Ramakrishna Credit Cooperative Society, both in Mangaluru, Badagabettu Credit Cooperative Society in Udupi and the residential premises of the society presidents resulted in the declaration of “unexplainable income” to a tune of Rs 200 crore. This includes around Rs 80 crore personal income of one of the society directors.
A large posse of taxmen from Bengaluru and Goa swooped on the societies and also the residence of SCDCC president MN Rajendra Kumar in Karkala last Wednesday. This time, it was not to look out for the non-PAN transactions nor the huge deposits that have gone unreported by the societies to the I-T department, but to go into the documents of the personal transactions of the society heads.
The wealth accumulation saga of one of the presidents is interesting -- papers relating to huge investments in real estate outside of Mangaluru were found. Interestingly, he has also been misusing his position and seeking undue favours from various customers of the bank. “Loans are sanctioned to the society employees at higher rates and their properties are pledged. We found that the employees had taken loans from various other banks to repay the loan of the society where they work. The president charges around 20% commission on every loan transaction and some of his cronies are the witnesses during the loan sanctioning process who also demand bribes for their presence,” explained sources.
Further, the taxmen have found that the president has amassed huge properties in and around Mumbai, Mangaluru and Bengaluru, all through illegal means. “He has been the president for more than a decade and is close to many prominent politicians who using his bank to park their unaccounted wealth. He has cheated small-time businessmen and employees of his own society. After scrutiny of papers, he admitted to unexplainable income of around Rs 80 crore,” sources added.
Taxmen have been searching various credit cooperative societies and banks since a few months, especially post demonetisation in November last to track unreported high transactions, huge cash deposits and illegal exchange of old currencies into new notes. Upto December 2016, nearly 14 inspection of banks were carried out and transactions over Rs 10 lakh were under the scanner.