An FIR has been registered by the Economic Offences Wing, Madhya Pradesh against the president and office-bearers of Karan Grih Nirman Sahakari Sanstha in Indore over an alleged Rs 3.37 crore financial irregularity.
According to officials, the society’s land was required to be sold as per government collector guideline rates, estimated at around Rs 3.37 crore. However, then Chairman Vijay Rathi allegedly sold the land for just Rs 50 lakh, causing significant financial loss to the society and violating official conditions.
Investigations further revealed that funds received from the transaction were diverted to private entities, including companies linked to Rathi’s family members. A portion of the money was allegedly transferred to a firm associated with his wife, followed by cash withdrawals and suspected embezzlement.
The probe also found that the proceeds were not used to purchase land for members, as mandated by the society’s resolution and regulatory approval.
The accused include society officials and associated private firms. Cases have been registered under IPC Sections 409, 420, and 120-B, indicating criminal breach of trust, cheating, and conspiracy.