Vijayapura co-op not involved in any financial irregularities, says Yatnal

Belagavi Vijayapura-based Siddhasiri Multi-state, Multi-purpose Cooperative Society is not involved in any irregularity or financial misconduct nor has it violated any law or rule, MLA and president of the society Basanagouda Patil Yatnal said in Vijayapura on Sunday. He was responding to allegations that the Central Registrar of Cooperative Society earlier raised some questions about some of the society’s transactions.

“Any society that converts into a multi-state society has five years compliance time to follow the Central laws. All our transactions and audit processes are according to the State laws. We have ample time to follow the Central laws. We have uploaded some audit documents prepared as per State laws into the CRCS portal. Since these are slightly different from those prepared as per Central rules, we have received a letter, with certain observations and seeking clarifications,” he told reporters.

“This is not to be construed as a notice given to a wrongdoer,” he said. He said that there is some misunderstanding about the ownership of Chincholi Sugar and Bio Industries Ltd., where his son Ramanagouda Patil is a director, and denied the charge that he diverted funds from Siddhasiri to his son’s factory. He, his wife, his two sons or other family members do not own any land or assets in their names in Chincholi, he said.

“All the properties are in the names of either Siddhasiri or Chincholi Sugar,” he said. The Central Registrar of Cooperative Society has questioned the society’s investment of ₹1,065,81,20,358.39 in Chincholi Sugar calling it “related-party transactions” and pointing out that it has not been disclosed in the audited accounts of the society. The Central Registrar has also asked the society what measures are being taken to safeguard its investment and what return it has earned.

“We received the letter on August 14, 2026. We have given satisfactory answers to all the queries,” Mr. Yatnal said. “The Central Registrar has objected to Siddhasiri running a chit fund. Hence, we have delinked the business, while the directors have formed a private company for the purpose. That has been communicated to the Central Registrar,” he said. Mr. Yatnal said that the Central Registrar has “wrongly understood” some of the “easy loans” as unsecured loans.

“We convinced the Central Registrar that they are secured loans given after obtaining three guarantees and five cheques. The other observations are minor issues, including signatures of some officials missing from some documents. They have all been corrected and submitted,” he said.