Absconding MD of Arbuda Credit Cooperative Society surrenders before police in Mount Abu

Palanpur/Mount Abu:

The absconding MD of controversial Arbuda Crediet Cooperative Society, which suddenly allegedly shut shop without paying back crores of rupees of depositors, mostly from North Gujarat, Rakesh D Agrawal, has finally surrendered before police in Mount Abu, where the head office of the cooperative society led by him was situated.

Last month the home department of Gujarat government had after the directives from the CM office, handed over the investigation and supervision of 12 cases registered against the society to CID (crime).

ADGP of CID (Crime) Anil Pratham, who led the team supervising the matter, today said that out of 12 cases, six were being investigated by the economic offense wing (EOW) of the CID-crime while the remaining were by local crime branch (LCB) of the respective districts. He said that there were 8 main accused including some of the branch managers of the 50 odd offices of the society across Gujarat.
The complaints are registered with district police of Banaskantha, Sabarkantha, Aravalli, Ahmedabad rural and Patan. It is suspected that the society has over Rs50 crore in deposits in 47 branches in Gujarat.

The society was floated by Agarwal from Mount Abu and used to provide loans at very lucrative rates. It had higher interest rates on savings and recurring deposits. Agarwal was missing for past few months which started the panic across the branches. It got multiplied when the societies could not pay back the money when the depositors demanded it back. Another credit society floated by Agarwal had also shut shop.

On the other hand, Agrawal after surrendering before police in Mount Abu today said that he was in depression and was also ill. ‘I was under treatment and had not ran away. After demonetization those who had taken loan from us did not pay back and we were in deep crisis. So many years of our labour (to groom the society) seemed to be going in vain. I became depressed and fell ill. I will pay back the money of depositors by either collecting the amount from the loan-takers or by disposing of my property,’ he said.

DeshGujarat