Administrator to be appointed from August
Chhatrapati Sambhajinagar: Adarsh Credit Co-operative Society depositors may have to wait up to a year to recover their money, according to sources. The credit institution was involved in a scam of Rs 202 crores, which was uncovered in a test audit conducted by the office of deputy registrar co-operative societies in 2016.
Private auditors, who were supposed to report irregularities to the deputy registrar's office, failed to do so, and a case has been registered against them for covering up the scam.
The administrator is expected to take over the credit institution's assets in the first fortnight of August, after which debt recovery and property seizure will begin. The assets of the credit institution's chairman and directors will also be confiscated and auctioned off to repay the depositors. However, the process may take years, and depositors will have to fight at various levels to get their money.
The district deputy registrar's department is also taking legal action against the credit institution, and depositors have been advised to be patient and not take an extreme stance. The district has 703 credit institutions, and no complaints have been received from any institution other than Adarsh co-operative society.
The scam has raised concerns about the effectiveness of private auditors and the need for stronger regulations to prevent such incidents from occurring in the future. The district deputy registrar's office has called for greater vigilance and immediate reporting of irregularities to prevent further losses to depositors.