Bhubaneswar, (Orissa Today) Feb 6: The Odisha government has dissolved the Nayagarh District Central Cooperative Bank Committee with immediate effect following serious allegations of corruption and financial irregularities. The Registrar of Cooperative Societies issued the suspension order, placing the bank under the administration of the Nayagarh District Collector.
The decision was taken under Section 32(7) of the Odisha Cooperative Societies Act, 1962, citing violations in financial management. The controversy erupted after the committee appointed SS Das Associates, a Nayagarh-based consultancy firm, to resolve a ₹362 crore income tax fine. The firm was allegedly paid ₹2.1 crore without a competitive selection process, raising concerns about procedural lapses.
Further investigations revealed possible misappropriation of funds, manipulation of bank records, and unauthorized appointments. The committee unilaterally appointed a retired bank employee as OSD to the President, violating regulations. Additionally, excessive expenditure on remuneration, house rent, and entertainment allowances for the President caused financial strain on the bank, impacting farmer members.
In response, the Economic Offences Wing (EOW) of the Crime Branch will probe further, while the District Collector will manage the bank’s affairs until further orders.
Odisha govt dissolves Nayagarh Cooperative Bank Committee over corruption allegations
