Brief Summary of Audit Report conducted by Audit Wing of Registrar, Cooperative Societies, Pb. Fraudulent payments/embezzlement pointed out by Audit agencies against the Ex-President and his administrative committee of the ACC Co-Operative House Building Society Ltd. Sec 76, Mohali, during the period 1.4.2011 to 19.10.2012. Report submitted on 10.7.2018 and pointed out some very serious irregularities/frauds and misappropriations etc as under:-
1. The payment of INR 24,88,612/- was made to Jeet Constructions and Builders for the construction of the boundary wall of the society’s project at rates higher than Pb. CSR. This led to a society suffering a loss of INR 2,47,846 on this account, for which Ex. President was held responsible.
Audit pointed out that the stamp paper for the execution of the tender for the boundary wall was purchased on 07-12-2011 whereas the agreement on the stamp paper was executed on 17-10-2017.
This clearly shows that such an important document related to the very first tender of society’s construction was forged to cover the formality.
2. The society’s important records like:-
A) Register of members
B) Books of committee’s activities/ proceedings
C) Cash book
D) General and personal ledger
E) Voucher bundles
F) Pending cases file
G) Receipt book counter files from serial No. 1 to 1300 etc were shown as missing and were not produced for audit.
To cover the lapse DDR No. 14 dated 13-8-2011 was registered at police station Maloya, Chandigarh but no further follow-up or action was taken. Also, the Cooperative Societies Department was not informed of such a huge lapse. In addition to the above, further key records were shown as missing like:
H) Proceeding book of general resolution dated 14-04-2011 Agenda register of the society w.e.f. 08-2011
i) Miscellaneous correspondence etc.
To cover this loss of records another DDR No. 49 dated 21-03-2013 was filed with Police Station Sector 26, Chandigarh. However, according to the law, the president of the society is responsible and is the custodian of all the documents of the society. Hence for the lost record legal action must be taken against him.
The requirement for legal action against him makes complete sense when the loss of documents is seen in conjunction with irregularities in allotting tenders and forging of key documents.
3. The payments were made to the following agencies without supporting vouchers, without any details of measurement books, and without verifying the work done by the Ex-President and his administrative committee as pointed out in the audit reports during the accounting period 01-04-2011 to 19-10-2012.
Key list of such irregular payments are as follows:-
a) Payments of INR 7,00,000/- and INR 20,00,000/- that is a total of INR 27,00,000 were made to architect M/S AnArchitect Group (Sh. Vinod Joshi).
b) Another payment of INR 2,00,000/- and INR 2,00,000/- that is a total of INR 4,00,000/- was made to the architect Shri Avtaar Singh Ossan of Ossan Associates.
c) Another payment of INR 2,041,9000/- was paid to M/S Hansraj Kohli and Company (Sh. Rahul Kohli) who were working as contractors without any supporting documents/vouchers or measurement books.
4. The tender of INR 33,30,36854/- for the construction of 110 flats was allotted to M/S Hansraj Kohli and Company with society allotment letter No. 1033 dated 03-07-2012 arbitrarily against the actual worked-out tender of INR 15,58,76901/- at Pb. CSR rates.
This caused society losses amounting to INR 17,71,59,453/- in violation of Competition Act 2002(3)3.
Allotted tender with the contractor was signed by:
Ex. President Sh. Harmohinder Singh
Ex. Secretary Sh. Paramjeet Singh
Ex. Vice President Sh. Joga Singh
Ex. Committee Member Savresh Kumar.
Hence Sh. Harmohinder Singh is directly responsible for all this as he has directly signed the agreement with the contractor.
In view of the above, It is directed by the Audit Inspector that appropriate/suitable FIR may be logged against the Ex. President Sh. Harmohinder Singh and his administrative committee for the huge loss suffered by the society members and for the deliberate loss of important records of the society.
5. The society was converted under Self Supporting Act on 19.10.2012 on d basis of fake and fabricated documents prepared by Prev. Prez. with 14.4.2011 resulation and which was registered by the Asstt. Registrar may be reverted under Co. Op Society Act.1961.
As per AUDIT REPORTS above it is clearly shown who previous Prez. and his Adm Comm. looted the society’s funds and ruined it with both hands, resulting in members suffering for a long.