No Audit For Years, ₹1.75 Crore Still Outstanding At Consumer Cooperative Store In MP's Nepanagar

The Nepa Primary Consumer Cooperative Store in Nepanagar, Madhya Pradesh, is grappling with a massive debt of approximately Rs 1.75 crore, which has been accumulating for several years. The cooperative store, currently led by president Ghisulaal Jain, relies on income generated from its gas agency and ration shops to meet its liabilities. However, the organization is without a banking license, raising questions about how the invested funds were disbursed.

Investors had deposited around Rs three crore in the store, but interest payments were made despite the lack of a banking license. Following instructions from the district registrar, principal amounts are now being returned in installments without interest. So far, around Rs 12.75 lakh has been repaid in the last financial year, leaving a balance of approximately Rs 1.75 crore outstanding.

The store has not been audited for years, and its grocery and textile businesses were discontinued in February 2015 due to competition from private traders. Several shops belonging to the cooperative have been rented out. Allegations suggest that previous directors encouraged Nepa Mill employees to invest money and pay interest, with investors reportedly receiving two times their initial investment. This has led to demands for an investigation into whether such transactions were permissible without a banking license.

Additionally, influential individuals are reportedly targeting four shops owned by the cooperative, valued at over Rs five crore. These individuals have demanded that the properties be safeguarded and an investigation conducted into boards during whose tenures losses occurred, as well as the fixation of responsibility and action against those found responsible.