According to the company, the auditors have identified as many as 156 cases of cash embezzlement by its employees, aggregating to Rs1.60 crore during the last financial year
Hyderabad: The auditors of SKS Microfinance have 'identified' 156 cases of alleged cash embezzlement by some of its employees, who conned the firm to the tune of Rs1.60 crore during FY10-11, reports PTI.
According to the company, the auditors have identified as many as 156 cases of cash embezzlement by its employees, aggregating to Rs1.60 crore during the last financial year.
"We have been informed that 52 of these employees were absconding. The outstanding balance (net of recovery) aggregating Rs9,634,467 has been written off," said company's auditors SR Batliboi & Co in the annual report.
The services of the concerned employees involved in the fraud have been terminated and the company is in the process of taking legal action against them, the auditors said.
The auditors have also brought under its lens 205 such cases where loans were disbursed to non-existent borrowers on the basis of fictitious documents created by the SKS staffers, aggregating Rs4.50 crore during the financial year.
The company had to write off the outstanding loan balance (net of recovery) aggregating Rs35,417,295.
Besides, 47 cases of impersonation in borrowing loans from the lender to the tune of Rs1.38 crore were also reported during the year, the report said.
SKS Microfinance is pursuing the borrowers to repay the loan amount, while the outstanding loan balance (net of recovery) aggregating Rs6,386,267 has been written off, it said.
"The net impact of frauds comes to around 0.07% of the total loan amount disbursed during the year. The company is working toward reducing this percentage by making process improvements, covering the losses by having an adequate insurance policy and by increasing opportunities for direct contact with our borrowers.
"During the year, the company has recovered an amount of Rs0.96 crore against fraud amount written off in the previous years," SKS Microfinance said.
SKS Microfinance executive chairman Vikram Akula remarked, "There was an external political attack on microfinance that culminated into draconian provisions of a microfinance law passed in Andhra Pradesh, the Andhra Pradesh MFI Act."
The Act has resulted in a slight reduction, up to 5%, in the company's growth, the report said.
The MFI Act mandates prior approval of every loan application by state government authorities.
It was promulgated in the wake of a spate of suicides by borrowers, allegedly due to the coercive recovery practices employed by the MFI agents.
Asking the police to have sympathy for hundreds of investors who lost their money, justice Ranjana Desai said, "If you are not able to trace them (accused) then there are various steps in law that you can take. Build some pressure on the accused."
Mumbai: Expressing displeasure over the Mumbai police's inaction in the City Limouzines cheating case, the Bombay High Court today sought information about the steps taken so far to arrest the absconding accused, reports PTI.
"We refuse to believe that you (police) cannot arrest the accused. Bombay police is the most competent force in India.
If they want to arrest someone, they can do it in a day," said the division bench of justices Ranjana Desai and RV More.
The court, hearing a bunch of petitions filed by investors who were allegedly cheated by the company, directed the police to state next week what efforts had been taken to trace the four absconding accused.
The company had floated a scheme under which investors paid for the cars which were to be bought in their names, and rented out by the company. But later, the cheques issued by the company began to bounce.
Out of the 13 accused, Masood Jamdar is in jail, statements of four others have been recorded, while another four were arrested and released on bail. But four persons are still to be arrested.
"The four accused who were on bail are also now absconding. Why have police not moved lower court for cancellation of bail?" Justice Desai asked.
Public prosecutor Pandurang Pol assured that Economic Offences Wing (EOW) of the city police would file an application seeking cancellation of bail.
The court also directed police to submit the bail orders of these four at the next hearing. Asking the police to have sympathy for hundreds of investors who lost their money, justice Desai said, "If you are not able to trace them (accused) then there are various steps in law that you can take. Build some pressure on the accused."
Besides EOW, Enforcement Directorate is also probing the case under Prevention of Money Laundering Act.
An Empowered Group of Ministries is scheduled meet on 11th July to review the export ban on wheat and non-basmati rice, commerce secretary Rahul Khullar informed the media
New Delhi: Ahead of the ministers' panel meeting scheduled next week to review the export ban on wheat and non-basmati rice, commerce secretary Rahul Khullar today said pressure is likely to stay on agri commodity prices, reports PTI.
However, he said that the government policies should not reflect a 'knee-jerk reaction'.
An Empowered Group of Ministries (EGOM) is scheduled to review the issue on 11th July. The food ministry has moved a proposal to export 2 million tonne of wheat and 1 million tonnes non-basmati rice.
Export of wheat and non-basmati rice has been banned since February 2007 and April 2008, respectively in the backdrop of high food inflation.
"My own sense is that the pressure on agri prices is going to continue. I also think that domestically the (pressure on) prices is going to continue even more," Mr Khullar told a WTO function here.
When asked about allowing wheat and non-basmati rice exports, he said the issue would be discussed next week.
Food inflation fell to a one-and-a-half month low of 7.78% for the week ended 18th June.
Currently, the government godowns are overflowing with over 65 million tonnes of foodgrains, while the storage capacity is only 62.23 million tonnes.
The agriculture ministry has pegged total foodgrains output at 245 million tonnes for the 2011-12 crop year, as against 235.88 million tonnes last year.