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  &  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 ?