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 Such entire share capital will have to be removed and if this  90% unlawful share capital will have to be withdrawn, how the bank and society will survive.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.