10. SCAM OF 1665 CRORES INVOLVED IN BIGGEST COOPERATIVE SCANDAL OF INDIA BY ADARSH-MODI GROUP OF MUKESH MODI OF SIROHI, RAJASTHAN

SCAM OF 1665 CRORES INVOLVED IN  BIGGEST COOPERATIVE SCANDAL OF INDIA BY ADARSH-MODI GROUP OF MUKESH MODI OF SIROHI, RAJASTHAN

Registered Letter
Dated : 29.04.2014
To,
The Deputy Commissioner Of Incometax
Central Circle-1,
Incometax Depaertment,
Aayakar Bhawan,
Paota “C” Road,
JODHPUR-324001

Subject : Complaint and Information regarding Frauds and Tax Evasion by Adarsh Credit Cooperative Society Ltd. Sirohi (Rajasthan) of Mukesh Modi and his group.

Sir,

Till  the time,  I have disclosed many unlawful activities of Adarsh Credit Cooperative Society Ltd. Sirohi ( ACCSL) before various incometax Authorities, CBI and other Authorities of Central Govt. etc and this time also, I am disclosing here under a very important issue, how  Mr. Mukesh Modi of Adarsh Modi group is cheating and defrauding  the poor public through ACCSL.

In addition to earlier disclosures and as per my deep and concrete research, Mr. Mukesh Modi has drained out amounts of Rs. 1665.10 crores through his own or benami 40 companies in the name of loans and list of all such companies  and loan amount is being enclosed herewith. Almost all the loans were siphoned/drained out  from Sirohi Branch-III of Adarsh Credit Cooperative Society Ltd.   As you must be aware that any company and  other non-individual can’t become member of ACCSL  and as per my information, you could not succeed in getting the details from ACCSL during the assessment proceedings as ACCSL  went in to settlement Commission by depositing admitted tax evasion of about  Rs. 8.00 Crores whereas interest earned on all such loans is not exempted u/s 80P of the Incometax Act and interest payable on deposits on the strength of share capital of all such unlawful loanees as shareholders is also not deductible expenditure as per provisions of sec. 37 of the Incometax Act, 1961.

I feel that share capitals of these companies were also materially funded or financed by ACCSL itself which is another part of frauds. For example, entire funds of  ADARSH THOUGHTWORKS PRIVATE LIMITED belongs to ACCSL itself.
Therefore, please be informed about above said information, unlawful activities and acts of public cheating/ frauds.  In fact, I have down-loaded above discussed authentic information (Covered by enclosed list) from Central Govt. website www.mca.gov.in  and I am also enclosing herewith  details of charge creation by ACCSL before various Registrars of Companies of various states in case total 39 companies out of list of 40  as website www.mca.gov.in is under maintenance till 29th April. My disclosure  covers only those 40 companies of which charges are registered with ROC and crores of unlawful loans  to non-individuals (companies etc of which charges were not registered ) are still out of my reach but I think loans of more than 1500 Crores have also been given to such non-individuals related to and benamis of Mukesh Modi and  in total, about more than 3500 crores of  funds of ACCSL have been misappropriated fraudulently for the personal benefit of Mukesh Modi and his group.

Your good self will also be surprised to see in the enclosed list  that maximum companies are having share capital of Rs. 1.00 Lac only (which is the basic requirement of company registration) but such  one company was given loan to the extent of  Rs. 230.00 Crores . It means loans were given 23000 times of capital of such fake companies and therefore poor depositors are at the greatest risk. You may please also read and know in the public interest about “Biggest Cooperative Scandal Of India by Adarsh Modi Group of Mukesh Modi” by searching on any search engine as every thing is available in public domain on www.blogspot.com , www.wordpress.com  and www.blogger.com .

Therefore, I request your good self as well as to all responsible /  honest public authorities to take serious and timely action against ACCSL and Mukesh Modi group and save the poor public who is being cheated continuously by many frauds.

Please also be informed that I am a complainant but information so furnished is official and authentic . If you feel any inconvenience in visiting www.mca.gov.in , you may please take services of any chartered accountant or company secretary having practice of ROC or you your self may apply for Digital Signature and therefore, please take the action after verifying  the details from above said Govt. website without searching the complainant.

Thanking You,

Yours Faithfully

( Jago Bhai )
Complainant

Encl : 1. List  of 40 companies whose loans’” charges” were registered before ROCs.
           2. Copies of 39 Downloads of Charges registered by above said companies before ROCs.

Copies to : (With an request to save the public from this India’s biggest cooperative  fraud of Mukesh Modi in the name of Adarsh Credit Cooperative Society Ltd and Adarsh Cooperative Bank Ltd.)

The Chairman, Central Board Of Direct Taxes, New Delhi.
The Chairman, Income-tax Settlement Commission, New Delhi.
The Governor, Reserve Bank Of India, Mumbai.
The Director, C.B.I., New Delhi.
The Chairman, SEBI, Mumbai.
The Central Registrar, Cooperative Societies, New Delhi.
The Director General Of Income-tax, Jaipur.
The Director General Of Police, Rajasthan, Jaipur.
The Director General Of Police, Gujarat, Ahmedabad.
The Director General Of Police, Chhatishgarh, Raipur.
The Director General Of Police, Hariyana, Gurgaon.
The Director General Of Police, Maharashtra, Mumbai.
The Inspector General Of police, Jodhpur.
The Superintendent of Police, C.B.I. Jodhpur.
The Superintendent of Police, Sirohi.
The S.H.O., Police Station, Sirohi.
The Commissioner Of Incometax (appeals)-Central

LIST OF COMPANIES TO WHOM ADARSH CREDIT COOPERATIVE SOCIETY LTD (ACCSL) HAVE GIVEN LOANS

S.No.Name Of CompanyCapital of CompanyLoan from ACCSL
(In Crores)(In Crores)

AADITYA MEGA PROJECTS  PVT. LTD.0.0175.00
ADARSH BUILESTATE LTD0.05             230.00
ADARSH THOUGHT WORKS PVT LTD.1.4120.00
ANSH BUILESTATES PVT LTD0.0150.00
ASHAPURNA INFRAPROJECTS PVT LTD0.9435.00
BATHING SUN REALITY PVT. LTD.0.0130.00
BLUE WATER REALITY PVT. LTD.0.0105.00
BONDI BUILDERS & DEV. PVT LTD0.0135.00
Chevron Buildcon Pvt. Ltd.12.0050.00
Deniz Builders & Dev. Pvt. Ltd.0.0135.00
Earth Buildcreation Pvt. Ltd.0.0110.00
Entice Realtech Pvt. Ltd.0.01             125.00
Fracton Technologies Pvt Ltd.0.0125.00
Gajanan Infrabuild Pvt Ltd.0.0150.00
Laxmikripa Builcon Pvt. Ltd.0.0118.00
Mantra Buildhome Pvt. Ltd.0.0190.00
Mascot Infrabuild Pvt Ltd.0.01  5.00
Nakoda Buildstructure Pvt Ltd.0.06  3.00
Nirwana Builcon Pvt. Ltd.0.0130.00
Pan Infratech Pvt Ltd.8.0030.00
Prime Time Infra Projects Pvt. Ltd.0.0420.00
Raghuvanshi Realestates Pvt. Ltd.0.0125.00
Redkey Buildcon Pvt Ltd.0.0150.00
Reed Promoters & Dev. Pvt. Ltd.0.0180.00
Riddhi Siddhi Infraprojects  Pvt. Ltd.1.5525.00
Riddhi Siddhi Infratech Ltd.0.01  4.50
Rudra Buildhome Ltd.0.01  4.50
Sambhav Township Pvt. Ltd.4.88            125.00
Shiva Mega Projects Pvt Ltd.2.5090.00
Shourya Builestates Pvt. Ltd.0.0150.00
Shri Govind Kripa Buildmart Pvt. Ltd.1.5650.00
Valerian Buildtech Pvt. Ltd.0.01  5.00
Vasu Infrasky Pvt Ltd0.01   3.75
Vasudev Infra Buildcon Pvt Ltd.0.0110.00
Vasudha realcon Pvt Ltd.0.0120.00
Victory Buildestates Pvt. Ltd.3.00  5.00
Vinayak Buildcreation Pvt Ltd.0.03  1.35
Virendra Modi Buildestate Pvt Ltd.0.0120.00
Vista Dream Homes Pvt Ltd.7.00             100.00
Vrindavan Dreamestates Pvt. Ltd.0.0125.00
-----------------
TOTAL          1665.10
==========

9. Involvement and links of Income-tax Authorities with Mukesh Modi in Biggest Cooperative Scandal of India by Mukesh Modi, Sirohi, Rajasthan.

9.  Involvement and links  of Income-tax Authorities with Mukesh Modi in Biggest Cooperative Scandal of India by Mukesh Modi, Sirohi, Rajasthan.

Involvement and links  of Income-tax Authorities with Mukesh Modi in Biggest Cooperative Scandal of India by Mukesh Modi, Sirohi, Rajasthan - Details and data of nation wise cooperative scandal by Mukesh Modi of Adarsh Group is already available in public domain and hard copies of declared scandals have been sent to many Govt. Authorities of Incometax Department, Cooperative Deptt., R.B.I. and CBI etc. also by post. Without going in to the details of scandal of Mukesh Modi through Adarsh Cooperative Bank Ltd ( ACBL) of Sirohi, Adarsh Credit Co-operative Society Ltd (ACCSL) of Sirohi and many companies of Mukesh Modi registered in Rajasthan, Hariyana and Gujarat, I would like to highlight some untouched issues relating income-tax authorities linked to Mr. Mukesh Modi i.e. Adarsh-Modi Group.

Since, the first posting of Mr. Rejendra Bothara, ITO (Presently TRO, Bikaner) at Jalore (Rajasthan)  as ITO, Jalore, he has close connection with Mr. Mukesh Modi, the Managing Director of ACBL and he is paid consultant of Mr. Mukesh Modi and Adarsh Group since then. During the assessment proceedings of ACBL and ACCSL  before One Mr. T.C.Gupta, Asstt. Commissioner of Incometax  at Jodhpur, Mr. Bothara was the mediator and bridge between Mr. Modi and T.C.Gupta. As information available to me, Mr. Rajendra Bothara (ITO) and Mr. T.C. Gupta (ACIT) encashed One Crore rupees from Mr. Modi for holding the ACCSL a Cooperative Bank. And then, Mr. Modi succeeded in managing Mr. T.C.Gupta through Mr. Bothara who held in his assessment order that Adarsh Credit Cooperative Society Ltd (ACCSL) is a Bank and disallowed the claim of deduction u/s 80P. In fact, Mr. Modi wanted to save the ACCSL from the harsh provisions of Sec. 269SS, 269TT and various provisions of other relevant Acts as his distant planning and he succeeded in his target and that one crore rupee was shared by Mr. Bothara and Mr. T.C.Gupta.

The Friendship between Mr. Bothara and Mr. T.C.Gupta was becoming closer and closer which was again seen during the search proceedings against Adarsh-Modi group on 10.02.2010 at Sirohi. Mr. Bothara was Authorised Officer at one location at Sirohi (Rajasthan)  where  cash in hand was available even more than 3.5 crores and Mr. T.C.Gupta also reached Sirohi to help and guide Modi-Adarsh group. At the location of Mr. Bothara, he took a bribe of Rs. 30 Lakhs from that party (an ally of Mukesh Modi) and handed over Rs. 30 Lakhs  to Mr. T.C.Gupta who carried that 30 Lakhs from Sirohi to Jodhpur and Mr. Bothara shown seizure of only around 9 Lakhs and Rs. 3.00 Crores were sent to Sirohi Branch of ACBL in a vehicle showing that it was sent by Jaipur Branch which were seized by search party. By this way, these both authorities not only taken away and shared bribe of Rs. 30 Lakhs but also helped the Modi group to fail the search proceedings and resultantly, no surrender of income could be declared.

In the next step, Mr. Bothara and T.C.Gupta advised Mr. Modi to take services of  Mr. K. C. Moondra, C.A. and Mr. Modi engaged Mr. K. C. Moondra a chartered accountant on the advise and guidance of Mr. Bothara and T.C.Gupta and this Tikadi (Triangle) decided that department and authorities should be harassed by complaints and delay tactics and the assessing authority should not be given any space to go beyond the precedence created by T.C. Gupta and this Tikadi succeeded in stretching the case too long and Mr. Vidhyut Trivedi (ACIT), the A.O. had no option except to follow the T.C. Gupta’s order. Despite all such crucial circumstances,  he  succeeded in creating  demands of more than 150 Crores in all group cases.

On the other side and almost in those days, differences arised between Mr. Bothara and Mr. K. C. Moondra and therefore, Mr. Bothara and Mr. T.C.Gupta tried and succeeded in guiding Mr. Modi against Mr. Moondra, C.A. and Mr. Moondra was removed to represent the Adarsh Modi Group and there after, disputes also arised between Mr. Moondra and Mukesh Modi plus Mr. Bothara.

In this entire episode, Mr. Vidhyut Trivedi missed many serious issues relating to ACBL and ACCSL  in this group cases but in the recent assessment proceedings, Mr. Trivedi went in to great depth and raised many   issues which he could not raise during the search assessment proceedings and now, Adarsh-Modi group is trying it’s best to manage many higher authorities of Income-tax Department and members of Income-tax Settlement Commission so that all earlier assessments should not be reopened u/s 148 or 263 of the Income-tax Act.

Therefore, I request and advise all concerned Govt. authorities to look in to this biggest cooperative scandal of India and they should  take / direct following actions immediately in the public interest :-

All the assessments till A.Y. 2010-11 should be re-opened u/s 148 or 263 of the Income-tax Act, 1961.

Special Audit should be carried out against ACBL and ACCSL in the Incometax Act.

TDS surveys should be carried out against ACBL, ACCSL and their big & benami  borrowers who has failed in deducting TDS u/s 194A of Incometax Act of more than 200 Crores.

Special watch should be kept over corrupt members of settlement commission and some income-tax authorities and honest & intelligent officers should be entrusted the job to represent the case before settlement commission in the case ACCSL.

RBI and Central Registrar of Cooperative Society, Delhi should also be involved in the enquiry with binding responsibilities who are presently supporting ACCSL and ACBL by not taking any serious action.

In case of non-cooperative attitude for collecting the details and data, fresh search action should be taken on the issues gathered by Mr. Vidhyut Trivedi and the issues available in public domain.

All types of security and support should be provided to Mr. Vidhyut Trivedi whose life is at risk by Adarsh-Modi  group.

Proper action should be taken against Mr. Bothara and T.C.Gupta for their mal-connection with Mr. Modi and their activities against the department.

Any higher authority of Incometax Department should declare publicly in press and media to aware the public and save the future loss of revenue and/or CBDT should issue instructions that -

ACCSL and ACBL are duty bound to deduct the tax at source from all the interests paid/credited by them to their members also u/s 194A.

All the loanees of ACCSL should deduct TDS u/s 194A from the interests paid/credited to ACCSL.

ACCSL can not accept and repay the any type of deposits exceeding Rs. 20,000/- otherwise than by account payee cheque  as per provisions of sec. 269SS and 269T of the Income-tax Act otherwise 100% penalty will be levied on ACCSL.

Membership of any  non-individual with ACCSL is unlawful.

ACCSL and ACBL are not the ‘cooperative society’ as per provision of sec. u/s 2(19) and for the various provisions of the Income-tax Act, 1961.

All ex-persons connected to this Adarsh-modi group such as Lalita Rajpurohit (M.D. Of ACCSL), Naresh Rajprohit (CGM of ACCSL), various ex-chairmen of ACBL and ACCSL and K.C.Moondra and other consultant of Adarsh-Modi group should be summoned and their statements should be recorded to get some valuable evidences.

8. ADARSH THOUGHTWORKS SCAM OF Rs. 53 CRORES IN BIGGEST COOPERATIVE SCANDAL OF INDIA BY ADARSH GROUP OF MUKESH MODI OF SIROHI, RAJASTHAN

ADARSH THOUGHTWORKS SCAM OF Rs. 53 CRORES IN BIGGEST COOPERATIVE SCANDAL OF INDIA BY ADARSH GROUP OF MUKESH MODI OF SIROHI, RAJASTHAN -  It is an unique and unimaginable scam done by Mr. Mukesh Modi and his brother Virendra Modi showing themselves farmers and Mr. Mukesh Modi abstracted Rs. 52,83,26,641/- (17,83,26,641/- + 35,00,00,000/-) from Adarsh Credit Cooperative Society LTD. (ACCSL) and in the years 2008-09 to 2012-13. In this scam, it is surprising that this fake and farji company i.e. Adarsh Thoughtworks Pvt. Ltd. remained out of net of Incometax Department. This scam also proved that Mr. Mukesh Modi means Lawlessness and Lawlessness means Adarsh Credit Cooperative Society Ltd ?

What is Adarsh Thoughtworks Pvt. Ltd ?

Adarsh Thoughtworks Private Limited is a company promoted by Mukesh Modi (showing himself Farmer) and his brother Virendra Modi (showing himself Farmer) with paid up share capital of Rs. 1,00,000/-  which was registered on  29.08.2008 (at an address of Ahmedabad) by Registrar of Companies, Gujarat. I consulted at least 5 chartered accountants to understand the object and business of this Adarsh Thoughtworks Private Limited from it’s Memorandum of Association, Audit Reports and balance-sheets but I could not understand the object and business of this company and we all reached to the conclusion that it is fake and farji company to eat / swallow the funds of Adarsh Credit Cooperative Society Ltd. and till 31.03.2013, Mukesh Modi’s this company, perhaps has eaten about Rs. 52,83,26,641/- crores of Adarsh Credit Cooperative Society Ltd. (ACCSL).

Adarsh Thoughtworks Private Limited had disclosed/accumulated losses of Rs. 18,530/- on 31.03.2009, Rs. 2,94,31,102/- on 31.03.2010, Rs. 8,60,65,025/- on 31.03.2011, Rs. 11,86,56,437/- on 31.03.2012 and 15,04,48,783/- on 31.03.2013. All the debtors and creditors of this company seems to be totally false and artificial. This is proven fact that this company never earned a single rupee as income. Balance-sheet value of share was always in minus [Less than ‘0’ (zero)] and despite that fact, super intelligent Mukesh Modi could sell the shares at premium of Rs. 155/- per share to Adarsh Credit Cooperative Society Ltd.. What a cooperative intelligence, Sir, Ji ?

How the first part of scandal carried out by Mukesh Modi

After investment of Mukesh Modi and Virendra Modi of Rs. 1,00,000/- as share capital for registration of company, 50000 shares of Rs. 10/- valuing Rs. 5,00,000/- were allotted to one Mr. Rajaneesh Dass (Of IIM Ahmedabad) free of cost on 30.05.2009 and on the very same day, Mr. Mukesh Modi abstracted and invested Rs. 3,25,00,000/- of Adarsh Credit Cooperative Society Ltd. (ACCSL) with this company and ACCSL was allotted 500000 shares of Rs. 10/- in Rs. 3,25,00,000/- charging premium of Rs. 55/- per share. 

In the second round, Mr. Mukesh Modi abstracted and invested total Rs. 12,26,40,393/- of Adarsh Credit Cooperative Society Ltd. (ACCSL) with this company during the year 2010-11 and ACCSL were allotted 4,40,000 shares of Rs. 10/- in Rs. 7,26,,00,000/- charging premium of Rs. 155/- per share on 12.08.2010 and Rs. 5,00,40,393/- were kept as share application money with this company.

In the third round, Mr. Mukesh Modi abstracted and invested total Rs. 2,31,86,248/- of Adarsh Credit Cooperative Society Ltd. (ACCSL) with this company during the year 2011-12 and ACCSL were allotted 4,13,494 shares of Rs. 10/- in Rs. 6,82,26,510/- charging premium of Rs. 155/- per share on 22.03.2012 and Rs. 50,00,131/- were kept as share application money with this company.

In total 3 rounds in above mentioned 3 years, Mr. Mukesh Modi abstracted and invested total Rs. 17,83,26,641/-  of ACCSL with this company as non-refundable share capital which means entire amount of Rs. 17,83,26,641/- of Adarsh Credit Cooperative Society Ltd. (ACCSL) has become ‘0’ (zero) and shareholders of ACCSL has lost Rs. 17,83,26,641/- as part of scandal of Mukesh Modi.

How the Second Part of scandal carried out by Mukesh Modi

Hey Bhawan ? See the scam intelligence of Mukesh Modi.  As mentioned in the first part, Adarsh Credit Cooperative Society Ltd. (ACCSL) became of shareholder of Adarsh Thoughtworks Pvt. Ltd. and this company was almost 96% subsidiary company of Adarsh Credit Cooperative Society Ltd. (ACCSL) whereas ACCSL has no such lawful authority of holding a subsidiary company. By making transfer entries or by rotating the money, Adarsh Thoughtworks Pvt. Ltd. also became artificial share holders of ACCSL and it was holding share capital of Rs. 8,51,45,100/- as on 31.03.2013. Resultantly, ACCSL increased it’s share capital by Rs. 8,51,45,100/- out of his own funds invested with Adarsh Thoughtworks Pvt. Ltd. (ATWPL) . Now, resultantly, ACCSL has lost it’s 17,83,26,641/- and Adarsh Thoughtworks Pvt. Ltd. is earning dividend from ACCSL from  funds of ACCSL itself.

How the Third Part of scandal carried out by Mukesh Modi

Hey Bhawan ? Mukesh Modi Ka Dil Abhi Bhi Nahi Bhara.  Scam is not yet over. Mukesh Modi also abstracted loan of Rs. 35,00,00,000/- from ACCSL for Adarsh Thoughtworks Pvt. Ltd.(ATWPL) and out of that or additionally, 6,00,00,000/- loan was given interest-free (0% Interest). As per auditors comment, I could not conclude whether the loan was of 35,00,00,000/- or of 41,00,00,000/- and it is not understandable what the auditor concluded.

Fabricated Balancesheets of Adarsh Thoughtworks and role of Auditors

As mentioned here-in-above, that no one can judge from Audit Report and Audited Balance-sheets, what is the business of Adarsh Thoughtworks Pvt. Ltd and auditors totally failed to put the true and correct picture of Adarsh Thoughtworks Pvt. Ltd. In fact, it was not the matter of failure of Auditors but it was the matter of Auditors involvement in the scam. I would like to draw attention of all concerns that as mentioned here-in-above, share premium of Rs. 18,72,91570/- was abstracted from Adarsh Credit Cooperative Society Ltd but this amount is missing from Audited Balance-sheet as on 31.03.2013 of Adarsh Thoughworks. In the balance-sheet as on 31.03.2013, opening share premium was shown only for Rs. 10,31,57,647/- and no fresh share premium in 2012-13 whereas truly, Share premium as on 31.03.2012 was Rs. 12,32,00,000/- and  fresh premium of Rs. 6,40,91,570/- was also abstracted / received during 2012-13. Hey Bhagwan, Ese Beiman Auditors Ka Kya Kare ?

No TDS by Adarsh Thoughtworks and role of Auditors

Adarsh Thoughtworks paid interest for crores of rupees to Adarsh Credit Cooperative Society Ltd but without deducting any tax at source and very surprisingly, auditors did not point out this failure in their audit report. True fact is this that Adarsh Credit Cooperative Society is not a bank but Mr. Modi and his team is befooling the public saying that Adarsh Credit Cooperative Society Ltd. is  a bank.

Sorry friends, I never saw such a Gorakhdhandha or fraud like this scam and it is surprising that all govt. authorities including Incometax Authorities of Ahmedabad, Registrar of Companies, Gujarat, Central Register, Cooperative Societies, New Delhi,  R.B.I and Auditors are either just spectators (Darshak like Dharatrashtra) or are in pocket of Mukesh Modi and that is why Mukesh Modi is looting and befooling the poor public of India. All the information discussed here-in-above is available on govt. website www.mca.gov.in and if any person has any doubt, please check the data with expert approach from www.mca.gov.in . What a cooperative Idea Sir Ji  for looting the poor public ?

More ever, I am putting every thing in public domain and Mr. Mukesh Modi has opportunity to make his comments publicly. I also challenge and give the public opportunity to Mr. Mukesh Modi to falsify above allegations if he has any thing to say.

7. Share Capital Scam in Biggest Cooperative Scandal of India by Adarsh Group of Mukesh Modi of Sirohi (Rajasthan)

Share Capital Scam in Biggest Cooperative Scandal of India by Adarsh Group of Mukesh Modi of Sirohi (Rajasthan) - In case of Adarsh Cooperative Bank, it’s  paid share capital was around 100 Crores  on 31.03.2013 and in case of Adarsh Credit Cooperative Society Ltd. , it’s  paid share capital was Rs. 180.74 Crores on 31.03.2013 and it had become around 237 Crores in Fabruary, 2014 but more than 90% share capital of Adarsh Bank as well as Adarsh Credit Cooperative Society is/was either unlawful or artificial and investors are being cheated with the false and fabricated figures of share capital. Few Govt. authorities have come to know this fabrication which will result in to serious action against both the Adarsh Bank as well as Adarsh Credit Co-operative Society.

Unlawful Share Capital :

Material part of share capital of Adarsh Society (ACCSL) is from non-individuals which is totally unlawful and against the provisions of Multistate Cooperative Society Act and Adarsh Bank’s material part of capital was/is held by Adarsh Society (ACCSL) itself or it’s benami representatives in contravention of provisions of Cooperative law as well as Banking Regulation Act. Such entire share capital will have to be removed and if this  90% unlawful share capital will have to be withdrawn, how the bank and society will survive. What a cooperative Idea Sir Ji ?

Artificial /Fabricated Share Capital :

Genuine share holders are holding share capital of Rs. 10.00 only in Bank and Society but Material part of share capital of Adarsh Society (ACCSL) or Adarsh Bank was created by transfer entries only and without any real investment of alleged share capital. It will be better to explain by example. Please take an example of Mukesh Modi’s company M/s Adarsh Buildestate Ltd of Gurgaon Hariyana with paid-up share capital of Rs. 5,00,700/- only. As per information available on www.mca.gov.in, this company was given loan of minimum of Rs. 230.00 Crores by Adarsh Society (ACCSL). For the loan of Rs. 230 Crores, Adarsh Buildestate should have 5.00% minimum share capital of Rs. 230 Crores i.e. 11.50 Crores with Adarsh Society (ACCSL) but this company had share capital of Rs. 10.00 only with ACCSL and for this 11.50 Crores share capital,  transfer entries were just passed from the loan account it self. By this way, this true and real company’s share capital holding with ACCSL was Rs. 10.00 only but share capital of Rs. 11.50 crores was created artificially by transfer entries. It is very serious and alarming cheating with the public at large. This is the way by which bank and society artificially created share capital for befooling the public at large, government and RBI.

Capital By Cross Entries

In some years such as 2009-10 and 2010-11, as per Mr. Mukesh Modi’s planning, share capital of Adarsh Bank was to be increased for image building and publicity. He just invested more than 44 Crores of Adarsh Society (ACCSL) in the share capital of Adarsh Bank despite prohibition by RBI but when this unlawful action was caught, Adarsh Society gave loans of more than 40 Crores  in the name of 3-4  companies of Mukesh Modi and these companies deposited / invested this amount with bank and bank returned the share capital to Adarsh Society (ACCSL). Likely, society invested crores of rupees in the share capital of Adarsh Bank in Benami names such as Virendra Modi and  Lalita Rajpurohit etc. This is the way of working and creating artificial share capital.

I am just alarming to  poor investors and  public at large to be beware of this cheating and scandal of Mukesh Modi. I also request to the Indian press and media to raise these issues with Incometax Deptt., Central Registrar and RBI to verify the truth from where every thing will be clear.

6. ROLE OF CORRUPTION IN BIGGEST COOPERATIVE SCANDAL/ SCAM OF INDIA BY ADARSH GROUP OF MUKESH MODI OF SIROHI (RAJASTHAN)

<strong>ROLE OF CORRUPTION  IN BIGGEST COOPERATIVE SCANDAL / SCAM  OF INDIA BY ADARSH GROUP OF MUKESH MODI OF SIROHI (RAJASTHAN)  – </strong>As discussed in episode-5, both the Adarsh Coop. Bank and Adarsh Credit Cooperative Society have violated many lawful provisions in last about 10 years and remained involved in many unlawful activities but without any serious action from relevant govt. authorities.

<strong>RBI officers / Auditors :</strong>

There is no control of RBI over Adarsh Credit Cooperative Society Ltd but Adarsh Bank is under the control of Reserve Bank Of India. RBI authorities were / are well aware of unlawful activities of Adarsh Bank but no serious action was taken against Adarsh Bank as Mr. Mukesh Modi and his agents have managed them by paying very high amount of bribes. Crores of rupees of loans were given by the bank in the benami names and/or without any security and/or to Mr. Mukesh Modi’s own alliance for real estate and wine business. Bank has given loans of more than 100 Crores for just share capital of Rs. 10.00. What a cooperative idea Sir, Ji ?

<strong>Central Registrar, Cooperative Societies :</strong>

Both Adarsh Bank and Adarsh Credit Cooperative society is controlled and regulated by Central registrar, Cooperative Societies but this authority is total in the pocket of Mukesh Modi. As per my best knowledge, this authority has not taken any action till now against both the societies despite the many serious violations of lawful provisions. In these circumstances, Mr. Mukesh Modi has become cooperative king which will result in to total failure of these both societies. What a cooperative idea Sir, Ji ?

<strong>Income-tax Authorities : </strong>

Before the action of Mr. T.C.Gupta, Asstt. Commissioner of Incometax, I.T.Department was also under the control of Mr. Mukesh Modi but after the search against Adarsh/Modi group, Income-tax Authorities came to know about unlawful activities of this group which resulted in to incometax demand of around Rs. 150 Crores. To save and hide from the honest and serious actions of I.T.Authorities, Adarsh Society has gone under the shelter of Incometax Settlement Commission after paying about 8 Crores and also approached to Rajasthan High court to get stopped the recovery and other pending actions. If honest actions will be allowed to Incometax Autrhorities, incometax and penalty demand may be raised to the extent of more than 1000 Crores.

<strong>Income-tax Settlement Commission :</strong>

After the RBI Officer and Central Registrar, Mr. Mukesh Modi’s whole expectation is from Income-tax Settlement Commission and he will try his best to manage / purchase the members of Settlement Commission but Mr. Modi has forgotten this fact that settlement commission is an organizations of  honest retired officers and therefore, he will not be able to purchase such honest authorities.  

5. Violation of laws and unlawful activities in BIGGEST COOPERATIVE SCANDALS/ scams OF INDIA BY ADARSH GROUP OF MUKESH MODI OF SIROHI (RAJasTHAN)

Violation of laws and unlawful activities&nbsp; IN BIGGEST COOPERATIVE SCANDAL / SCAM&nbsp; OF INDIA BY ADARSH GROUP OF MUKESH MODI OF SIROHI (RAJASTHAN)&amp; nbsp; – Both the Adarsh Coop. Bank and Adarsh Credit Cooperative Society have violated at least following lawful provisions in last about 10 years and remained involved in many unlawful activities after managing relevant govt. authorities :-
<strong>
Multi-state Co-operative Law&nbsp; </strong>

1. As per provisions of multistate cooperative Act and byelaws of both Adarsh bank and Adarsh society, any single share holder can not hold 20% or more share capital of the bank and society&nbsp; but generally, share holding remained more than 20% in the hands of single share holders particularly of the Mukesh Modi and his alliance.

2. Share capital accounts of share holders in both bank and society are being allowed to be operated and maintained like a saving bank account and share capital of both bank and society is redeemed / repaid totally in contravention of law.

3. Both Adarsh Bank and Adarsh Society can not admit any person other individual as member / share holder but both violated this provisions and admitted many partnership firms, AOPs, companies etc. as members and share holders.

4. Both Adarsh Bank and Adarsh Society&nbsp; can give loan to it’s shareholders to the extent of 20 times to 20 times of the share capital holding of the relevant borrower but both Adarsh Bank and Adarsh Society&nbsp; gave the loans in crores of rupees just against shareholding of Rs. 10/- only and transfer entries were made for share capital by creating loan for share capital it self. In many cases loans were given even more than 100,00,00,000/- for real share capital of Rs. 10/- only. What an cooperative idea Sir Ji ?

5. Both Adarsh Bank and Adarsh Society&nbsp; created false share capital by their own loaning and on the strength of their own loans, increased share capital and then deposits. Deposits can not be accepted more than 10 times of the share capital plus reserves but these both&nbsp; Adarsh Bank and Adarsh Society&nbsp; borrowed very excessive deposits on the strength of artificial capital created by transfer entries.

6. In case of Adarsh Society, it&nbsp; capitalised the dividend but there is no such provision and more ever, no perfect record of such capitalization was maintained by the society.

7. Managing Directors of both the&nbsp; Adarsh Bank and Adarsh Society were paid share in the profits of bank and society in totally in contravention of law.

8. Both the&nbsp; Adarsh Bank and Adarsh Society admitted benami share holders with share capital of crores of rupees.

9. Substantial commission was paid to agents for the transactions with members itself and crores of rupees were incurred on publicity for the business with the members itself.

10. Minutes books have been maintained in removable loose papers instead of bounded book / register to pass any resolution as and when required in any date / back date.

<strong>Banking Regulation Act</strong>

1. In contravention of binding provisions, Adarsh Bank admitted Adarsh Credit Cooperative Society as share holder and even this society was holding even more than&nbsp; 50% share capital of the bank.

2. Adarsh Society also held share capital in crores of rupees in bank in Benami names.

3. Adarsh Society is allowing and operating saving bank account and current accounts of it’s members and/or non-members in contravention of binding provisions.

4. Adarsh Society is generally mis-representing it self as a Bank and befooling the public at large.

<strong>Income-tax Act </strong>

1. Particularly, Adarsh Credit Cooperative society is accepting and repaying the deposits in cash in violation of provisions of Incometax Act and such cash transaction in last 10 years should be even more&nbsp; 20000 Crores for which penalty may be levied to the extent of Rs. 20,000 Crores.

2. Both the bank and society are not deducting TDs at source from interest amount in contravention of the provisions.

3. Society is a not allowing/permitting it’s borrowers to deduct TDS on the interest payment to society as posing / misrepresenting it self bank.

4. As stated in earlier posts, particularly, society is not a co-operative society but it is a private concern in the clothes of co-operative and therefore, bank and society both are unlawfully claiming status of co-operative society.

4.BIGGEST COOPERATIVE SCANDALS OF INDIA BY ADARSH GROUP OF MUKESH MODI OF SIROHI (RAJASTHAN) – DIVIDEND SCAM OF MORE THAN 100 CRORES

BIGGEST COOPERATIVE SCANDALS OF INDIA BY ADARSH GROUP OF MUKESH MODI OF SIROHI (RAJASTHAN) – DIVIDEND SCAM OF MORE THAN 100 CRORES.

Share holders and Investors of Adarsh Credit Cooperative Society Ltd  and public in general (which are/were prospective customers) have noticed in the press, media and advertisements that Adarsh Credit Cooperative Society Ltd  has declared very high and alarming dividends to the extent of 70% on it’s paid up share capital. But these declarations of dividends were only a publicity stunt and none of the shareholders except Mr. Mukesh Modi, was paid a single paisa of dividend till March, 2011 and unlawful payment  (window dressing)  in last days of March, 2011, was also an alarming  &amp;  unlawful act and unauthorized payments to few small share holders.

It is worthwhile to mention that Adarsh Credit Cooperative Society Ltd  declared it’s  first dividend @ 70% for the year ended on 31.03.2006 but alone Mukesh Modi was paid dividend of Rs. 1.125 Crores and none other shareholder was paid dividend as entire declaration and payment was a top secret and therefore, other share holders could not know the truth of declaration and payment of dividend. Thereafter, dividend was publicized and declared @ 30% for the year ended on 31.03.2007, @ 22% for the year ended on 31.03.2008, @ 22% for the year ended on 31.03.2009, @ 49% for the year ended on 31.03.2010, @ 50% for the year ended on 31.03.2011, @ 25% for the year ended on 31.03.2012  and Interim Dividend @  20% for the year ended on 31.03.2013 but  neither  a single rupee of dividend was paid to any share holder for many years nor there is any provision to declare and pay interim dividend. . For not paying the dividend, alleged management of Adarsh Credit Cooperative Society Ltd, passed an unlawful resolution (Perhaps in back date) and converted it’s declared dividend in to share capital without giving any credit to share capital of any share holder individually.

When the scandal of dividend was unearthed, alleged management of Adarsh Credit Cooperative Society Ltd  took an strange action and paid partially alleged unpaid dividend (so capitalized) for many years in the last days of March, 2011 by just passing transfer  entries in the saving bank accounts of few / many small share holders and material part of alleged major part of dividends (in crores of rupees) has perhaps been misappropriated by the Modi’s management. And this non-payment of dividend, part-payment of dividend and capitalization of dividend etc. are also big scandals of cooperative world.

Firstly, as per relevant co-operative law, dividend so declared should be paid (only) and there is no authority and law to capitalize the dividend (as in the case of companies) and also, there is no law and authority under the relevant laws to pay the dividend out of share capital. All such actions of alleged Mukesh Modi management were taken in contravention of law but the Central Registrar of Cooperative Society and auditors of the Adarsh Credit Cooperative Society Ltd (H.O. Sirohi) were remained mere spectators for fulfillment of their personal purse. What a co-operative idea, Sir Ji ?

One more important issue which is still to be investigated that material part (40% to 100%) of dividend was paid to Mr. Mukesh Modi and his alliance (in crores of rupees) only and poor shareholders/depositors and public at large was befooled and cheated by Mr. Mukesh Modi and his alliance in this dividend episode also. Those share holders who has/had left the membership before March, 2011, their dividend have also been misappropriated or used unlawfully.

I estimate that dividend of more than 100 Crores has been misappropriated. I have also doubt and it is also a point of investigation that only few transfer  entries in S.B.Accounts were made for name’s sake as window dressing. Friends, you will find it an unique scandal of dividend which is first of it’s kind in India as a result of power of politics and money. What a co-operative idea, Sir Ji ?

Many govt. authorities have come to know regarding this dividend scandal by Mukesh Modi and therefore, it seems that Adarsh Credit Cooperative Society Ltd (H.O. Sirohi) may be the next fall  after ‘Sahara’. Jago Janata Jago. What a co-operative idea, Sir Ji ?