Rs 300 mn corruption in T&T Housing Society - Zameen News

Rs 300 mn corruption in T&T Housing Society

November 5, 2010 • news

Islamabad: Over 1500 allotees remained deprived of plots despite paying money to T&T Employees Cooperative Housing Society, located in sector F-17 in zone II of the federal capital, as the society management was reportedly involved in the corruption of Rs 300 million.

Islamabad Deputy Commissioner has issued a show cause notice, in the light of Rule 48 of Cooperative Societies Rules 1927 and Byelaws of the Society, to the management and instructed it to appear before him on November 12 and explain its position.

According to letter No 1954/CR/ICTB, obtained by Daily Times, T&T Employees Cooperative Housing Society’s managing committee was elected for the scheme but it was failed to develop it despite the passage of a long time. Furthermore, there are several patches in the scheme of the society, which are to be cleared for its development and a large number of complaints by the society members against the committee.

The letter also reveals that the Annual General Body Meeting (AGM) of the society held on March 28, 2010 did not approve agenda items of meeting of the society, which indicates distrust of members of the society in the society’s managing committee. Whereas, as per special audit report from July 01, 2004 to June 30, 2009, an amount of Rs 76,895,175 is recoverable in the head of advances for land, that is a serious violation on the part of the managing committee extending such huge amount to the land providers without any proper security.

It says T&T Employees Cooperative Housing Society’s Vice President Malik Jamil has been given advance money to purchase land, and as per special audit report, an amount of Rs 18,824,361 including the total amount of recovery of Rs 76,895,175 is recoverable from him. This is serious violation of byelaws of the society on part of the managing committee.

As per the special audit report, an investment of Rs 3,75,00,000 (long term investment) and Rs 21,70,00,000 (short term investment) is made by the managing committee of the society with M/S TSSL, owned by the society’s president without any bank guarantee. According to the observation of the auditor, the managing committee invested heavy amount in a private company to earn interest but the amount of interest was not received from the company, therefore, the principal amount along with interest was recoverable from the company immediately.

The society’s AGM had demanded the return of this money in the society’s accounts. However, the managing committee of the society, despite its surety to return the money within a period of six months, could not return it due to which the development of scheme of the society badly suffered shortage of funds.

The letter states that the circumstance clearly show that the society’s managing committee was failed to run the business of the society and as per Byelaws, Cooperative Societies Act 1925 and Cooperative Societies Rules 1927 and warrants immediate action.

[Daily Times]