Police on Friday visited the residences of the directors of Sri Vashista Credit Souharda Sahakari Ltd to verify documents in connection with cheating complaints filed against the co-op society.
Officers from the Hanumanthanagar police station visited the residences of all the eight directors, including chairperson Venkata Narayana K N. His son and one of the directors of the co-op, Krishna Prasad, lives in that house. Nothing was seized from any of those residences though, a senior police officer said. “We will be able confirm whether or not a fraud was committed (at the co-op) only after the audit report is available. The co-op society didn’t delay payments to investors until November 2020. We have asked for an explanation about all the investments along with the documents,” the officer explained.
The co-op society came in the news last month after police opened a case of cheating against it following a complaint by one of the depositors, Arun B N, a resident of Arekere. Arun told the police that the co-op society stopped paying interest in November and froze cash withdrawals. His father, Nagaraja B T, 78, had kept Rs 99 lakh as fixed deposits (FD) from 2015 to November 2020.
Police have questioned Narayana and his son twice, besides taking the statement of over 50 depositors.
The directors told the police that the co-op was not able to pay the interest because of the pandemic and promised to resolve the issue soon.
The society offered attractive interest rates on FDs and has around 3,800 depositors. Police refused to accept the depositors’ demand to register separate FIRs against the directors based on their individual complaints, saying it’s not possible to take up so many cases. They have promised to make individual depositors witnesses in the case.
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