Inquiry
into OSCB Scam worth Rs.500 crore is suppressed and Scamster T.K.Panda, MD protected by State
Vigilance and Chief Minister’s office of Nabin Patnaik Government, Odisha
Dear friends
Corruption, irregularities and
misappropriation of fund worth of thousands of crores of rupees less than 18
years of rule of BJD Govt. has become order of the day in Odisha. Scam in
Odisha State Cooperative Bank (OSCB)
is one of the major scams that Odisha has witnessed since 18 years. The scam and loot of public exchequer by
Tusar Kanti Panda, Managing Director of Odisha State Co-operative Bank and
other officials has its genesis since 2010. Despite plethora of complaints
and allegations filed starting from Chief Minister’s Office to State Vigilance by Activists, Director of OSCB
and several recommendation of
concerned Minister to State Vigilance,
no inquiry has been conducted
rather suppressed and corrupt
officers given promotion time and again to suppress scam. This is the beauty of Nabin Patnaik Govt. in
Odisha.
The expose of corruption and misappropriation of fund
started with revelation of statutory audit Report of Odisha State Cooperative Bank presented by Auditor General, Cooperative Societies, Odisha
on 30.9.2011. While presenting the Audit Report for the year 2010-11, the Auditor General has unearthed a lot of
corruption and irregularities which is presented below and recommended for
action.
A. Extension
of service of 19 employees beyond the
age of 58 years in contravention of OSCB
Staff Service Rules 1980 , order No. 11866/Dt. 27.9.2003 and order No. 21098/
Dt. 1.10.2010 of RCS(0), is irregular and illegal and hence attracts action as contained in Rule 6,7,8 of Order No. 11866/Dt.27.9.2003
of RCS (O) .
B. Revision
of Pay and allowances of the employees as resolved by the management vide resolution dated
23.3.2011 is inconsistent with Letter No. 935 Dated 28.1.2010 of Government in
Cooperation Department and as such ,
should not be implemented without prior
approval of RCS (0) as envisaged under section 28( viii) of OCS Act, 1962.
C. Severe
financial irregularities like forged DDO guarantee, signature in DDO guarantee from
unauthorized person, fake and bad finances, misappropriation and various other
irregularities in documentation have been noticed in Main Branch, Cuttack
branch, Rourkela branch and Paradeep branch of the Bank. Both civil and
criminal action against the errant officials should be taken.
This Audit Report
was presented to Managing Director, OSCB, Regional Director of Reserve Bank of
India, Accountant General of Odisha, Commissioner-cum-Secretary, Cooperation
Department, Registrar, Cooperative Societies, Odisha. But no action was taken
on this report by any authority.
Activists as Petitioner
The illegal
extension of service of employees and
whimsical revision of pay and allowances of the employees without approval of
Registrar, Cooperative Societies caused around 100 crores of revenue loss in the preceding years. Referring it, In 2016, Sri P.C.Mohanty filed
a complaint to the State Government alleging misappropriation of Rs. 100 crores
in OSCB. On 16.3.2016,
the Cooperation Department in its letter No. 2209 dated 16.3.2016 sent
the copy of allegation to Registrar, Cooperative Societies for an inquiry into
it. It was kept cold storage for more than one year without any inquiry. When
it was exposed in public domain, the office of Registrar, Cooperative Societies sent a letter dated 30.6.17 directing to the
Deputy Registrar and Assistant Registrar of the Cooperative Societies
to conduct joint inquiry into allegation of misappropriation of fund within 15
days. Nothing happened. Again on 14.3.18, the Deputy Registrar, Cooperative
Societies, wrote a letter
to Sri T.K.Panda, Managing Director, OSCB ( referring previous letter no. 15609 dated
21.9.2017 and letter no. 4074 dated 21.10 .17 ) to produce the following documents –
i. Supporting
documents to ascertain the fact that management of Bank is competent to revise
the salary and allowances and copies of related Board resolution.
ii. Seizure
list provided by the Vigilance
Department while making seizure of
required minute Book of the management committee meeting.
iii. Pay roll of staff from 2009 to 31.3.2017
iv. Staff service rule in original
v. Circular and guideline of RBI and NABARD on
manpower engagement in all cadre of OSCB.
vi. Original order of enhancement of retired
age.
But
astonishingly, the MD, OSCB has not produced any document to RCS, Odisha.
On RTI query about inquiry report, on 18.7.18., the
PIO, office of Registrar, Cooperative Societies has intimated that the inquiry
is under process. It means no inquiry has been conducted within 3 years of
petition filed to State Government.
Complaint to
Director, State Vigilance
In 2015 and
2016, two complaints about huge corruption and irregularities into software and computer procurement, private
share procurement, illegal lending in Rourkela and Koraput, illegal extension
of service of the employees of OSCB was
filed by RTI Activists Sri Pradip Pradhan, Biswajit Mohanty, Sri Sudhir Mohanty and Sri Ashok Nanda to
Director , State Vigilance seeking an inquiry into the matter and demanded action against Sri Tusar Kanti Panda, Managing Director,
OSCB. The team also personally met Dr. R.P.Sharma, the then Director, Vigilance
(presently Director General of Police) and appraised him about the scam. No inquiry has been conducted by State Vigilance till yet. It
has been suppressed, as sanction was not granted from office of Chief Minister.
Dr. Damodar
Rout, Minister acted as Whistleblower
After receiving
series of complaints and petitions from public, Dr. Damodar Rout, the then Minister for
Cooperation, Govt. of Odisha wrote a letter dated 3.4.2017 the
Superintendent of Police, Vigilance, Bhubaneswar forwarding all petitions relating to misrule, misappropriation of fund, committance of gross finance
irregularities against present Managing Director Sri T.K.Panda seeking inquiry into it. Dr. Rout’s contention was “ I
remember to have had endorsed these allegation petitions containing my
observations to RCS, Odisha and Principal Secretary , Cooperation department
many times. But I am shocked neither the matter was enquired nor action taken and I am really disturbed
to receive such petitions every now and then. Besides wide media coverage
depicting massive corruption has become matter of concern. Even statutory
regulatory authority under Odisha Cooperative Services Act has been unconcerned even after special
audit. It appears the continuous inaction and callousness of the supervisory
officials and authority and their role may not beyond suspicious. Therefore, I
refer this matter to you for thorough
probe into the allegation involving misuse of public fund vis-à-vis the role of
RCS, Odisha and AGCS .” It is
interesting to note here that
despite Minister’s reference
several times , neither the matter
was enquired , as Sri T.K.Panda, MD, OSCB is highly protected by Chief Minister’s office.
T.K.Panda, MD, OSCB- Not
only corrupt but great Manipulator under patronage of CM’s Office
Sri T.K.Panda Managing Director of Orissa
State Cooperative Bank has been able to manipulate to continue in service
illegally w.e.f. 1.11.2013 after his retirement age of 58 years on 31.10.2013 taking
plea of an unauthorised resolution
of the Management of OSCB dt.6.05.2009 to enhance
the superannuation age of employees of OSCB from 58 years to 60 years violating the statutory order No.21098
dt.1.10.2010 of RCS (O) which prohibited extension of service of employees
of Cooperative Societies after their retirement age of 58 years.
During his such illegal
continuance in service beyond his retirement age after 31.10.2013, his service
was once again extended up to 62 years on 21.08.2014 from 1.11.2015 to
31.10.2017 as per recommendation of Professor and HOD of Computer Science Deptt
of IIT Kharagpur (Who was a member of the high value controversial CBS
procurement committee as consultant of ODCB) on the pretext that second line officers of OSCB are not
capable to move forward the CBS
computerization project of OSCB successfully overlooking the statutory ban
order for extension of service imposed by RCS mentioned above. The CBS software
implementation is a big disaster in Cooperative Banks due to defective CBS
software procured from v-soft.
During his tenure Sri Panda
had allowed around 60 number of high salaried employees of OSCB to illegally
continue in service beyond their retirement age of 58 years up to 60 years
without approval of Registrar of Cooperative Societies basing on the unauthorised resolution of the
Management of OSCB dt.6.05.2009 to enhance
the superannuation age of employees of OSCB from 58 years to 60 years violating the statutory order No.21098
dt.1.10.2010 of RCS (O).
He had also illegally twice revised salary of
employees of OSCB at par with RBI in
collusion with the employees and Board members without statutory approval of Registrar of Cooperative Societies twice
during his tenure over looking
provisions of Orissa Cooperative Societies Act, 1962 and disbursed huge amount
of arrear salary when the Bank was
being bailed out by Government of Orissa from being closed by pumping of huge share capital
of Rs 54 Crore to enhanced it’s Capital
base (CRAR 9%) to meet RBI norms
since it’s share capital had substantially eroded due to the nonrecoverable (loss catagory NPA) loan of Rs 48 Crore granted to Bijayananda Cooperative Sugar Mills
during his tenure and apart from other NPA loans. As per law the entire unauthorised expenditure made for extension of service and illegal
revision of salary of staff without
approval of Registrar is recoverable from him. He has successfully thwarted the inquiries conducted on the above matter by putting pressure on the
concerned officials.
In 2010, he was appointed as MD of OSCB
by the then Management of OSCB headed by Sri Jagneswar and dropped the
disciplinary proceedings against him without any inquiry and did not even
accept the draft charge sheet forwarded by vigilance department against him.
Due such illegal favour and collusion with the Management Sri Panda not only
escaped departmental action but was instrumental financing of Rs 48 Crore to Bijayananda
Cooperative Sugar Mills overlooking Credit Monitoring guideline of NABARD which
restricts financing of Rs 5.23 Crore to the said sugar Mill as per their
eligibility as pointed out by NABARD in their statutory Inspection report of
2012.
Despite
of several allegations of financial irregularities pertaining to illegal
financing and unauthorised expenditure etc., Mr Panda could manage to get
another term extension of service by
adopting an illegal Board Resolution in this connection on 7.10.2016 to extend his service for three years. His
extension of service has been justified by the President of OSCB vide his
letter No.1688 dt.29.06.2017 and letter No.3201 dt.13.09.2017 giving false and misleading information to
Government that no other officer satisfyingly ‘Fit and Proper Criteria’ prescribed by RBI are available for
appointment to the post deliberately citing the old guidelines of ‘Fit and Proper Criteria’ of RBI dt. 18.06.2008 suppressing the revised guidelines of RBI issued
vide letter No.8843 dt.3 3.2009 and letter No.137 dt. 5.7.2011 in respect of
the ‘Fit and Proper Criteria’ for CEOs
of State/Central Cooperative Banks. As per the revised guidelines, Post Graduates in any discipline with eight years work experience
in middle/senior level posts in Banking sector are eligible for the post of
MD of OSCB and it is understood that a good number senior officers of OSCB including the seventeen CEOs of DCCBs are
complying the ‘Fit and Proper Criteria’ for the post of Managing Director of
OSCB.
However, with kind intervention of Government, extension of service of Sri Panda was
curtailed to six months and Chief Minister / Chief Secretary had passed order to identify suitable
substitute of Sri Panda. But unfortunately instead of trying to identify
T.K.Panda’s successor as per order of Hon’ble CM, Sri T.K.Panda in connivance
with the President and some Board members of OSCB again extended his service up to 70 years in the MC meeting of OSCB scheduled held on 23.02.2018 vide agenda No. 10 taking plea
of recent NABARD Circular No.13/IDD-01/2018 Dtd.17.01.2018.
More over to hoodwink the Hon’ble Chief
Minister and Chief Secretary an advertisement has floated seeking applications
for the post of MD OSCB giving relaxation of age beyond 62 years to apply in
case of existing employees of Scheduled Cooperative Banks with the sole
intention of appointing him again through backdoor means. It is very
interesting to note that the qualification
for the post of MD, OSCB stipulated
in the screening committee notification of Cooperation
Department dated 6.3.2018 is as per
the old ‘fit and proper’ criteria
prescribed by RBI dt.18.6.2008, whereas, the qualification stipulated in the advertisement for said post of issued by Cooperation Department on 7.3.2018 is different and is as per the revised ‘Fit and Proper’
criteria prescribed by RBI dt.3.3.2009 and 5.7.2011.
Apart from Kerala in Himachal Pradesh,
IAS officers are still posted as Managing Director of State Cooperative Bank
despite implementation of Vaidyanathan Committee Recommendation (VCR) for posting of professionals in State
and District Cooperative Banks complying "fit and proper criteria"
prescribed by RBI. Currently one Ram Kumar Goutam from Himachal Administrative Service is posted as Managing Director of
HPSCB wef 9.1.2018 after Gopal Sharma IAS who was MD of HPSCB from 9.5.16 to
9.1.18. All along IAS are posted in HPSCB for transparent administration and
better coordination with District Administrations. But it is hard to understand
why in Odisha, a
tainted person having several allegations of serious financial irregularities,
vigilance cases is given repeated illegal extension of service and some top
bureaucrats are again hatching conspiracy to reappoint the said incumbent by
hook or crook through back door means up to 70 years taking plea of age enhancement
guideline of NABARD dated 17.1.2018 though he has already crossed 62 years.
T.K.Panda dares to manipulate
all Govt. procedures to continue in service taking extension time
and again and succeeded in influencing all authorities not to conduct any inquiry into alleged
corruption and irregularities in
OSCB even despite order of concerned Minister, Vigilance could not conduct any inquiry into it. It has
only been possible because of patronage from office of Chief Minister.
This is just glimpse of corruption and how corrupt officials continue
to prosper in Odisha with all tacit support from Chief Minister, Odisha.
Pradip Pradhan
M-9937843482
Date- 1.8.18
