Major Fraud, Forgery and Irregularities in
OSCB
Illegal extension of service to Sri T.K. Panda,
Ex- MD ( Major irregularities and Fraud )
Under the staff service Rules, Sri T.K. Panda had attained
the age of superannuation as on
31 October 2013 ( which was 58 years
before revision), but continued
in service after 1 November 2013 till 31 October 2015 ( two years) in
violation of ( then existing ) staff
Rules No. 42 and sections 28(3)(b)(1) and 33 –A of the OSC Act, 1962 under which RCS ( Registrar of Cooperative Societies) had
not accorded approval which
was mandatory. The RCS had raised queries on his appointment which were
never replied by the bank.
However, RCS vide his order No. 14866 dated 21 August 2014
( MC resolution 22 August 2014) had extended
his tenure as Managing Director ( MD) UNDER section
28(3)(b)(1) for a period
of 2 years from 1 November
2015 to 31 October 2017 , without post
facto approval of the prior period, effectively making the said period of
continuance of Sri Panda as MD
untenable. Incidentally, the President
of OSCB vide letters dated 13
June 2017 and 29 June 2017 had appraised RCS and Secretary, Cooperation citing provisions of old guidelines of
RBI on
fit and proper criteria
dated 18 June 2008 instead of
latest applicable guidelines
dated 3 March 2009 and 5
July 2011 and requested for
extension of Sri T.K.Panda as
MD for
further period of 3 years on
the grounds that suitable
officers complying with fit and proper
criteria were unavailable in the
bank whereas the actual
position was contrary to the point.
Past History of forgery of Sri T.K.Panda
Sri
Panda during his tenure as CEO of Keonjhar
Central Cooperative Bank was instrumental in taking over the defaulted
NPA loan of Sarthak Minerals (
owned by one , Bijayalaxmi
Patnaik , w/o- Sura Patnaik , (
incidentally then headed Keonjhar CCB as
President) from Bank of India , vide
sanction order No. 6707 dated 31 March 1998, violating extant credit authorization norms
and without examining credit worthiness of the borrower. It was further found that the present loan outstanding together
with the interest was more than Rs. 3.50 crore which constituted major
default to the bank worsening its
financial position. Moreover , in letter No. 1575/Vig.Cell dated 3 April 2010, Government in General
Administration ( Vigilance ) Department
had forwarded the memorandum of article of
charges , statement of
imputation, memo of evidence along with SP’s report to RCS
and asked him to take
disciplinary action against
the officer concerned for his
involvement in sanction and disbursement of irregular
cash credit loan
of Rs. 10 lakh by showing undue
favour to Shri Debashis
Patnaik and
Debadutta Patnaik, partners in
Bhubaneswar Commercial Corporation without valid
documentation and on the basis of
fabricated records violating financing norms of OSCB. The cases were still
active and yet to come to logical
conclusion. Incidentally as per Keonjhar
CCB, AGCS( Auditor General of
Cooperative Societies) special audit
report and RCS ( letter dated 31 January 2019), Rs. 83,54,973 was audit recoverable against Sri
Panda pertaining to his period as
CEO of Keonjhar DCCB ( District Central Cooperative Bank). The case
is still pending even two decades after
the cause of action. As per circular
of the Government in Cooperation
Department ( No. 4868 dated 30 June 2015) , the action should have been taken by fixing responsibility on the MC ( Management Committee)/MIC ( Management In-Charge)/ CEO ( Chief Executive Officer).
NABARD has
recommended that in view of
magnitude of issues raised and extent of evidence required to be examined , a special investigation by an officer
or a team from the cooperative regulator , such as RCS needs to be taken up. OSCB may make a special
request to RCS for constituting
an enquiry for examining the
allegations along with available facts ,
identify act of omissions and commissions , fix responsibility for lapses and take further necessary
action as may be deemed appropriate.
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