A former managing director of a cooperative sugar mill from Surat district and two others have been booked for allegedly obtaining a loan from the National Cooperative Development Corporation (NCDC) by submitting false documents related to sugar stocks, Indian Cooperative reported.
An FIR has been registered with the Olpad Police Station based on a complaint filed by Brijeshbhai alias Viralbhai Gunvantbhai Patel, chairman of the custodian committee managing Shri Kantha Vibhag Sahakari Khand Udyog Mandali Ltd. The complaint claims that the alleged irregularities took place in 2023 when the cooperative sugar mill was run by its previous management.
According to the FIR, those named in the case include former managing director of the sugar mill Pradipkumar Gautambhai Pandya, godown keeper Pradipkumar Bhagubhai Patel, and Jatinbhai Ishwarbhai Nayak, the former managing director of Surat People’s Co-operative Bank Ltd., who is currently the managing director of Sarvodaya Sahakari Bank. They have been accused of preparing false stock verification documents to obtain loans.
The complaint states that the mill applied for a working capital loan from the National Cooperative Development Corporation (NCDC) in March 2023 by pledging sugar stock. Based on the application, NCDC sanctioned a loan of about Rs 6.29 crore in June 2023 against a declared stock of 23,882 quintals of sugar.
In November 2023, another loan of about Rs 9.35 crore was sanctioned after documents submitted to NCDC claimed the mill had 59,402 quintals of sugar in stock. However, the complaint says a physical verification conducted on November 17, 2023, found that only about 4,022 quintals were actually available.
The complainant alleged that despite the lower stock, the accused prepared and submitted a false verification report showing a higher quantity of sugar and used it to obtain the loan.
The FIR further states that under a tripartite agreement between the sugar mill, NCDC, and Surat People’s Co-operative Bank Ltd., the bank was responsible for monitoring the pledged stock and ensuring that proceeds from sugar sales were deposited towards repayment of the loan.
Reacting to the development, chairman of the bank Amit Gajjar said the bank came to know about the FIR only recently. He said the issue surfaced on Friday and the bank has called a board meeting on Monday evening to review the matter.
Gajjar said there was no financial loss to the bank and no bank funds were involved. He added that the issue appeared to be related to certain lapses in the tripartite agreement and audit responsibilities. The board had earlier passed a resolution giving powers to the then managing director, Jatinbhai Nayak, to carry out the necessary procedures, including audit-related work.
The complaint also alleges that the proceeds from sugar sales were not deposited as required and that the loans taken from NCDC were misused. In total, loans worth about Rs 15.65 crore were allegedly obtained in this manner and remain unpaid.
Police have registered a case under several sections of the Indian Penal Code and begun an investigation. Officials of the Olpad Police Station said more names may be added if further involvement comes to light during the probe.
