news details |
|
|
| Non utility out of investment in plots, bank management in profound slumber | | |
Jammu | Mar 28
“After investing huge public money in the cost of plots, management of Citizen’s Cooperative Bank (CCB) has not bothered to extract proper utility out of the investment made. The management of the bank seems in deep slumber for the last about one decade which warrants proper accountability for such a long time”, District Audit Officers (DAOs) inferred in one of its statement following the test check on the Annual Audit Report of CCB for the year 2003
According to sources, on Nov 21, 1995 the bank had taken on lease a plot measuring 19800 square feet approximately 70 marlas at Rail Head Complex from JDA, on the payment of Rs 43.75 lakhs for a period of 40 years. Agreed rent payable was Rs 100 per marla. In that way, Rs 7000 stands rent payable every year which was neither paid nor provisioned. Therefore no utility of the costs incurred was confronted in the audit. Similarly, the bank was also shown in possession of one more plot at Transport Nagar comprising 26 marlas for Rs 12.96 lakhs taken on lease for 40 years from JDA on May 20, 1996. In this case also, the fixed yearly ground rent of Rs 2590 was neither paid nor provisioned.
Since, there was the direct involvement of pubic money, DAO sought details in this regard from the bank management. In response to this, bank management furnished that the observation in this regard has been taken notice of and the matter is being taken up with JDA authorities. On the basis of reply, DAOs inferred that bank has not bothered to extract proper utility out of the investment made in the above said plots after investing huge public money in the cost of plots.
Further, on the deposits, bank is bearing interest burden and financial losses in the event of improper utility of this asset is apparent. DAO further inferred that management of the bank seems in deep slumber for the last about one decade which warrants proper accountability for such a long time and laxity in regard to the non reflection of rentals payable to be paid on this account is also evident.
It is to mention that pursuant to the instructions issued by the Registrar Audit Cooperatives Societies J&K, DAOs were required to conduct test check of at least 25% of the audited part. The same was taken up at the CCB in April, 2006 and the exercise was based on the Annual Audit Report and the subsequent audit observations issued on the accounts of the bank for the year 2003-04.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
|
 |
|
|
