Violation of laws and unlawful activities IN BIGGEST COOPERATIVE SCANDAL / SCAM OF INDIA BY ADARSH GROUP OF MUKESH MODI OF SIROHI (RAJASTHAN)& nbsp; – Both the Adarsh Coop. Bank and Adarsh Credit Cooperative Society have violated at least following lawful provisions in last about 10 years and remained involved in many unlawful activities after managing relevant govt. authorities :-
Multi-state Co-operative Law
1. As per provisions of multistate cooperative Act and byelaws of both Adarsh bank and Adarsh society, any single share holder can not hold 20% or more share capital of the bank and society but generally, share holding remained more than 20% in the hands of single share holders particularly of the Mukesh Modi and his alliance.
2. Share capital accounts of share holders in both bank and society are being allowed to be operated and maintained like a saving bank account and share capital of both bank and society is redeemed / repaid totally in contravention of law.
3. Both Adarsh Bank and Adarsh Society can not admit any person other individual as member / share holder but both violated this provisions and admitted many partnership firms, AOPs, companies etc. as members and share holders.
4. Both Adarsh Bank and Adarsh Society can give loan to it’s shareholders to the extent of 20 times to 20 times of the share capital holding of the relevant borrower but both Adarsh Bank and Adarsh Society gave the loans in crores of rupees just against shareholding of Rs. 10/- only and transfer entries were made for share capital by creating loan for share capital it self. In many cases loans were given even more than 100,00,00,000/- for real share capital of Rs. 10/- only. What an cooperative idea Sir Ji ?
5. Both Adarsh Bank and Adarsh Society created false share capital by their own loaning and on the strength of their own loans, increased share capital and then deposits. Deposits can not be accepted more than 10 times of the share capital plus reserves but these both Adarsh Bank and Adarsh Society borrowed very excessive deposits on the strength of artificial capital created by transfer entries.
6. In case of Adarsh Society, it capitalised the dividend but there is no such provision and more ever, no perfect record of such capitalization was maintained by the society.
7. Managing Directors of both the Adarsh Bank and Adarsh Society were paid share in the profits of bank and society in totally in contravention of law.
8. Both the Adarsh Bank and Adarsh Society admitted benami share holders with share capital of crores of rupees.
9. Substantial commission was paid to agents for the transactions with members itself and crores of rupees were incurred on publicity for the business with the members itself.
10. Minutes books have been maintained in removable loose papers instead of bounded book / register to pass any resolution as and when required in any date / back date.
Banking Regulation Act
1. In contravention of binding provisions, Adarsh Bank admitted Adarsh Credit Cooperative Society as share holder and even this society was holding even more than 50% share capital of the bank.
2. Adarsh Society also held share capital in crores of rupees in bank in Benami names.
3. Adarsh Society is allowing and operating saving bank account and current accounts of it’s members and/or non-members in contravention of binding provisions.
4. Adarsh Society is generally mis-representing it self as a Bank and befooling the public at large.
Income-tax Act
1. Particularly, Adarsh Credit Cooperative society is accepting and repaying the deposits in cash in violation of provisions of Incometax Act and such cash transaction in last 10 years should be even more 20000 Crores for which penalty may be levied to the extent of Rs. 20,000 Crores.
2. Both the bank and society are not deducting TDs at source from interest amount in contravention of the provisions.
3. Society is a not allowing/permitting it’s borrowers to deduct TDS on the interest payment to society as posing / misrepresenting it self bank.
4. As stated in earlier posts, particularly, society is not a co-operative society but it is a private concern in the clothes of co-operative and therefore, bank and society both are unlawfully claiming status of co-operative society.
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