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MP Consumer Store Faces ₹1.75 Crore Liabilities Amid Audit Questions
A cooperative store in Nepanagar, Madhya Pradesh, owes investors about ₹1.75 crore.
More than ₹3 crore had reportedly been invested in the organisation.
The store is now using money from its gas agency and ration shops to pay its bills.
It returned about ₹12.75 lakh last year.
Repayments are being made in instalments without interest.
The store has reportedly not had an audit for several years.
Some people allege that earlier directors accepted deposits and paid interest even though the organisation did not have a banking licence.
The store's president says the questioned transactions happened before his tenure and need investigation.
NEPA Primary Consumer Cooperative Store in Nepanagar has around ₹1.75 crore in outstanding liabilities.
The store is using income from its gas agency and ration shops to meet current liabilities.
The organisation reportedly has not been audited for years, while its grocery and textile businesses closed in February 2015.
About ₹12.75 lakh was repaid during the last financial year, with principal amounts being returned in instalments without interest.
Questions have been raised about alleged interest payments, past transactions, director accountability and the protection of properties valued above ₹5 crore.
- Who
- NEPA Primary Consumer Cooperative Store, its investors, former directors and president Ghisulaal Jain.
- What
- The store has around ₹1.75 crore in outstanding liabilities amid demands for an investigation into past transactions and management.
- Where
- Nepanagar, Madhya Pradesh.
- When
- The grocery and textile businesses closed in February 2015; about ₹12.75 lakh was repaid during the last financial year.
- Why
- Questions concern years without audits, alleged deposits and interest payments without a banking licence, business losses and responsibility for unpaid funds.
Store Management's Position
Investors' and Critics' Concerns
Responsibility for questioned transactions
Store Management's Position
President Ghisulaal Jain said the transactions in question did not take place during his tenure and said the disbursements require investigation.
Investors' and Critics' Concerns
Investors and others have demanded an investigation into the boards under whose tenures losses occurred and action against those found responsible.
Deposits and interest payments
Store Management's Position
The store says it does not have a banking licence, raising questions about how money was disbursed and whether past transactions were permissible.
Investors' and Critics' Concerns
It is alleged that previous directors encouraged Nepa Mill employees to invest and paid interest, including a reported case in which a ₹1 lakh deposit became ₹2 lakh.
Protection of assets
Store Management's Position
The organisation is meeting liabilities through income from its gas agency and ration shops while returning principal amounts in instalments.
Investors' and Critics' Concerns
People have demanded that the organisation's plots and shops be safeguarded, alleging that influential individuals are eyeing four of its shops.
Key facts
- Outstanding liabilities
- Approximately ₹1.75 crore
- Total reported investment
- More than ₹3 crore
- Repayment last financial year
- Approximately ₹12.75 lakh
- Repayment terms
- Principal amounts are being returned in instalments without interest
- Business closures
- The grocery and textile businesses were discontinued in February 2015
- Property value
- The organisation's plots and shops are valued at more than ₹5 crore
- Current income sources
- A gas agency and ration shops
Quotes
Ghisulaal Jain
President of NEPA Primary Consumer Cooperative Store
“The organisation does not have a banking licence and questions over how money was disbursed require investigation.”
freepressjournal.in
Sources
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