Odisha govt dissolves Nayagarh Cooperative Bank Committee over corruption allegations

Bhubaneswar, Feb 6: Amid allegations of corruption, the Odisha government on Thursday ordered the immediate dissolution of the Nayagarh District Central Cooperative Bank Committee.

According to official reports, the Registrar of Cooperative Societies issued an order suspending the committee and placed the bank under the administration of the Nayagarh district Collector.

This action was taken under the authority granted by sub-section (7) of Section 32 of the Odisha Cooperative Societies Act, 1962, following serious accusations against the bank’s management.

The controversy emerged after the appointment of SS Das Associates, a consultancy firm based in Nayagarh, to handle the bank’s ₹362 crore income tax liability. Allegations arose that the firm was paid ₹2.1 crore without following a competitive selection process or legal formalities. Additionally, irregularities were reportedly found in the official order approving the payment.

It was claimed that the committee, under the leadership of its chairman, selected the consultancy firm without adhering to proper procedures and unilaterally fixed a consultancy fee at 1% of the total tax demand.

Further inquiries by senior officials revealed potential misappropriation of funds and tampering with bank records. Moreover, the committee allegedly appointed a retired bank employee as an Officer on Special Duty (OSD) to the President, disregarding existing regulations.

The investigation also found that the committee had approved excessive financial benefits for the President, including inflated remuneration, house rent, telephone bills, and entertainment allowances, leading to significant financial losses for both the bank and its farmer members.

In light of these findings, the Registrar decided to dissolve the committee. Meanwhile, the Economic Offences Wing (EOW) of the Crime Branch has been tasked with further investigating the matter.