Nepanagar (Madhya Pradesh): NEPA Primary Consumer Cooperative Store is facing liabilities of around Rs 1.75 crore, leaving investors’ money stuck. The organisation is currently meeting liabilities through income generated from its gas agency and ration shops.
NEPA Primary Consumer Cooperative Store president Ghisulaal Jain said the organisation does not have a banking licence and questions over how money was disbursed require investigation. He said the transactions in question did not take place during his tenure.
According to information, more than Rs three crore was invested in the store. Depositors were allegedly paid interest despite the organisation not having a banking licence.
Following instructions from the district registrar, principal amounts are now being returned in instalments without interest.
Around Rs 12.75 lakh was repaid in the last financial year, while approximately Rs 1.75 crore remains outstanding.
No audit, businesses shut
The store has reportedly not been audited for years. Its grocery and textile businesses were discontinued in February 2015 after they failed to compete with private traders. Several shops belonging to the organisation have been rented out.
Transactions under scanner
It is alleged that previous directors encouraged Nepa Mill employees to invest money and paid interest.
Investors depositing Rs one lakh were reportedly paid Rs two lakh. Whether such transactions were permissible without a banking licence has prompted demands for an investigation.
Properties also under focus
Influential people are allegedly eyeing four shops belonging to the organisation. With its properties valued at more than Rs five crore, people have demanded that the plots and shops be safeguarded.
They have also demanded an investigation into boards during whose tenures losses occurred, fixation of responsibility and action against those found responsible.
