Replying to a question from JD(S) member Basavaraj Horatti in the Legislative Council, Co-operation Minister Lakshman Savadi on Tuesday said about 34 housing societies were facing serious charges of misappropriation of funds and irregularities and steps were being initiated against them under the Karnataka Co-operative Societies Act, he added.

The government has already superseded the management boards and appointed administrators with respect to five societies, where misappropriation of funds have been proved.

Horatti sought to know why the government was not taking steps to protect gullible people from being cheated by housing societies, which are mushrooming in all big cities and towns.
“Thousands of people are investing their hard-earned money in these societies with an intention to own a site. But a majority of these societies are cheating people, and the government has been turning a blind eye,” he added.

He said about nine people had committed suicide last year after being cheated by housing societies.

The government should take immediate steps to rein them in, he added.