Probe begins into loan waiver fraud

Hyderabad: The vigilance and enforcement department has taken up investigation into the fraud in the farmers’ debt waiver scheme. Following the exposé in these columns, top brass of the vigilance department directed officers to take up investigation in primary agricultural credit societies. “PACS are being checked. The Waran-gal wing has taken up investigation into the Chennaraopet PACS,” a senior official said.

Sources said vigilance officials seized books and records pertaining to the loan waiver scheme in Moinabad in Ranga Reddy district while two other PACS in Mahbubnagar are under scrutiny. “We are checking cash books, debt loan ledgers, audit report, members list, vouchers of payments for various works including construction of buildings, rooms, compound walls etc., since  the fraud has been detected in Chennaraopet PACS in Warangal,” the official said.

A senior official from the cooperative department said that there was misappropriation of funds under loan waiver scheme and some officials were trying to hide it with the backing of ruling party leaders. “The books of accounts and ledgers have to be checked by a qualified auditor. Only auditors can detect the scam. The fraud is deep rooted,” a cooperative department official said.

A random check in Chennaraopet PACS in Warangal on a complaint from a MCPI leader had unearthed a fraud of roughly Rs 5 crore in the loan waiver scheme. A detailed audit of all 904 PACS could unearth a bigger scam. Officials found fraud in construction of an office-cum shopping complex, a compound wall etc. In the PACS books, the principal and interest amounts were fudged and money jacked up and claimed under the scheme.