Politics · India · 2 hrs ago

Co-operation ministry seeks answers on Siddhasiri Society finances

Co-operation ministry seeks answers on Siddhasiri Society finances

The Union Ministry of Co-operation has asked Siddhasiri Society to explain its financial dealings in a letter to Vijayapura’s Deputy Commissioner in Karnataka.

The society is headed by Basanagouda Patil Yatnal, a Karnataka MLA, and his son Ramanagouda is also on its board.

The registrar questioned an investment of about ₹1,065 crore in a company where Ramanagouda is a director, saying the related-party transaction was not disclosed in the audited accounts.

It also raised concerns about interest-free loans and an investment in Siddhasiri Chit Fund.

The society’s reported cash and equivalents were 0.86% of deposits, below a 2% minimum, while unsecured loans were 80.57% of total loans, above a 15% cap.

The society has been asked to provide detailed answers on these and other issues, including tax appeals and its borrowing practices.

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CRCSCentral Registrar of Cooperative Societies
Such related-party transactions are not disclosed in the audited accounts. Also, the company appears to have last filed its return with the Registrar of Companies in 2015
via The Hindu