Adarsh Credit Co-op must pass through the acid-test

Adarsh Credit Co-operative, held as a flagship credit co-op in the credit co-operative sector in the country has received a damning review from ABP News Television channel in its special program titled Master Stroke, anchored by Punya Prasun Bajpai.

 The television report says Adarsh Credit Co-op runs Ponzi schemes promising doubling the deposits in flat 6 years- a promise which is made only to be broken and to cheat the gullible investors. Ironically, Adarsh recently presented its success story on the global stage ‘Challenge Yourself to Think’ summit in Las Vegas, USA.

The report goes on to say it has so far cheated more than 20 lakh investors by accumulating more than Rs 8400 crore from them and shifting most of this money to shell companies being run by the relatives and friends of Mukesh Modi-the Chairman and the main promoter of Adarsh Credit.

Efforts to contact both Mukesh Modi and Rahul Modi (MD of Adarsh Credit Co-op) by the Indian Cooperative failed despite several attempts. We could, however, talk to one of the staff-members Ms Brinda who was on leave and was therefore unable to help us contact either of the two Modis.

It bears recall that Mukesh Modi is the President of Sahakar Bharati Rajasthan Chapter. His nephew Rahul Modi is the Managing Director of Adarsh Credit Co-operative.

The ABP news makes the balance sheet of Adarsh Credit Co-operative filed on March 31, 2018 as the main basis of its allegations. It also, however, shows some of the investors on TV screen who were not given their money before the maturity date. These were the ones who rushed to withdraw their money in the wake of damning media reports against the Adarsh Credit Co-op.

The Balance Sheet shows that while Adarsh Credit Co-op has just Rs 131.63 crore as deposits in Bank, it owes more than Rs 9639 crore of investors’ money with it. The report asks questions as to where do the rest of money go.

The money goes as loans, explains ABP News, to 59 companies floated by the relatives of Mukesh Modi- brothers, sisters, sons, nephews and the entire extended families, each of whom heads a company or two. These companies are given loan to the tune of Rs 1546 crore by the Adarsh Credit Co-operative.

“As if this is not enough, Mukesh Modi goes on to set up more than 134 shell companies again in the name of friends and family members and gives them a whopping loan of Rs 2545 crore from the same credit co-op which has been collecting gullible investors’ money promising them high returns”, says the report.

ABP News also places Mukesh Modi in the same league as Lalit Modi and Neerav Modi and makes an insinuation at the former’s BJP connection and with the surname of the Prime Minister Narendra Modi.

Given its impeccable record, it is incumbent on the part of Sahakar Bharati to clear doubts from the minds of people in the wake of this damning media report. Because one cannot allow the famed cooperative to be under a cloud especially in the centenary year of its founder Inamdar who coined “Bina sanskar nahi sahakar”. Adarsh has no choice but to pass through the ordeal of having to prove its innocence.

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Comments ( 2 )

  1. RAJESH

    Adarsh Credit Co-operative, Adarsh Companies, Adarsh Co-operative Bank, the Hundred of Companies and so hundred of partnership of Mukesh Modi and his family is an organised money circulation, Ponzi scheme. It is bound to flee with the hard earner money of the public at large.

  2. Kumar

    Adarsh Urban Co-op Bank has changed its name from Madhav Urban Co-op Bank To Adarsh just to evade the ignominy of being eqated with the infamous Madhav Mercantile Co-op Bank which shook co-op world with the huge scam of 1990s. It’s now irony of things the same accusations are now confronting Adarsh Coop Credit Society, the child of Adrash UCB. Top management must come clean on whole episode if it has nothing to hide. Indian coop world may not withstand another scam by cheating Investors by floating shell companies by another flagship cooperative of Northern India.

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