Economic Offences Wing



                  The Co-Operative Societies Act, 1983 has been enacted to ensure proper functioning of Co-Operative Societies in the State. Though the act has covered a wide variety of subjects to check misappropriation and other malpractices, the effective monitoring and certain suggestions will plug the loopholes perceived to have given some thread for the offenders to pick up.

          The following suggestions would put a stamp on the offenders indulging in misappropriations.

    i.  President of the Society signs the register mechanically without applying their mind which can be attributed to their low standard of education.

    ii. Members and villagers are not sensitized about the fall out of  their non payment of dues they owe to the society

    iii. Diversion of fund from one head to other head leads to misappropriation.

    iv.  Sensitizing Co-Operative members to insist and obtain receipts on payment of dues to society.

    v. Gathering Intelligence about the functioning of societies, activities of their staff.

    vi. Though Regular Audit is proposed for every society, this is not being conducted. Lack of proper physical verification of Jewels mortaged, Documents etc. leads to defalcation of funds.

     vii. Proper verification of Loanees, cash transaction in General Ledgers, Cash book, Loan Repayment register, member Admission register should be thoroughly verified. 

    viii. External Audit and Internal Audit of Societies should be conducted in time and the report submitted by external Auditors should be given due importance and dealt with expeditiously.

    ix. The Statistics of cases registered in Chennai CCIW-CID against Criminal misappropriation for the period of 10 years from 2002 to 2011 comes to about 57 of which 7 cases were disposed off on grounds of (i) mistake of fact (2), (ii) Action Dropped (1), (iii) Referred (2), (iv) Charge Abates (1), (v) Acquitted (1),and the remaining cases are pending trial.

   x. Throughout the state of Tamilnadu, over the years, 1439 cases have been registered for a misappropriation to the tune of Rs. 3.95 crores of their cases, about 1439 of which 1013 cases were disposed off a grounds of (i) mistake of fact (14), (ii) Action Dropped (19), (iii) Referred (11), (iv) Charge Abates (25), (v) Conviction (777), (vi) Acquitted (145), and (vii) Transferred (22) the remaining cases are pending trial.

   xi. More than half of the cases are accounted for recovery of misappropriated amount through surcharge proceedings. The results of recovery through surcharge proceedings stems from the fact that registrations of criminal cases have the desired effect in the said recovery. Besides, the offenders are being brought to circle of surveillance that prompts them to take recourse to correctional methods.