A Parliamentary panel has asked the Narendra Modi government to “unearth the scam” involving multi-state cooperatives that have emerged as safe havens for illegitimate funds, ET reports.
The Parliamentary panel headed by former union law minister Veerappa Moily has suggested instituting a “special audit” with regard to multi-state cooperatives to expose the scam. Considering multi-state cooperatives have recently mushroomed, the House panel has called for a “corrective action” to be taken immediately”.
The panel has expressed “surprise” on the fact that how a scam of such proportions has “escaped the notice of the authorities, particularly the Central Registrar under Ministry of Agriculture”. Significantly, the committee has recorded that “huge amount of money has been transferred out of Ponzi schemes to Multi-State Cooperatives, ET reports in an exclusive coverage.
The 30-member committee, which has representation from various political parties including the BJP and from both houses of the Parliament, has suggested that the regulatory regime in respect of Multi-State Cooperatives should be “streamlined and tightened so that they do not become an instrument of diverting and shielding illegal funds from Ponzi companies.