<p>The CEO and 20 directors of the Health and Family Welfare Department Employees’ House Building Co-operative Society Ltd are facing legal action.</p>.<p>The Registrar of Cooperative Societies (RCS) has ordered criminal action against the board and the developer for allegedly defrauding 2,781 investors.</p>.<p>The co-op is accused of not delivering any sites despite collecting Rs 180 crore from members. The registrar discovered 25 serious lapses in the administration of the co-op during its probe under Section 68 of the Karnataka Cooperative Societies Act.</p>.<p><strong><span class="bold">Rs 180-crore scam?</span></strong></p>.<p>Between 2011 and 2015, the society signed multiple agreements with M and M Bangalore Pvt Ltd to develop three housing layouts: one in Mysuru and two in Bengaluru. The society deposited over Rs 180 crore without taking any surety or registering the land.</p>.<p><strong>Also Read |<a href="https://www.deccanherald.com/city/bengaluru-crime/bluru-man-stabbed-and-gutted-by-muggers-in-brazen-attack-1213641.html" target="_blank"> B'luru: Man stabbed and gutted by muggers in brazen attack</a></strong></p>.<p>However, the members were not privy to these agreements.</p>.<p>The society is accused of signing four agreements with the developer without obtaining approval in the annual general meeting and revising the agreement without taking the consent of the directors. </p>.<p>Shankar Nayak, president of the society, said they are preparing the compliance report and would comment on the issue shortly.</p>
<p>The CEO and 20 directors of the Health and Family Welfare Department Employees’ House Building Co-operative Society Ltd are facing legal action.</p>.<p>The Registrar of Cooperative Societies (RCS) has ordered criminal action against the board and the developer for allegedly defrauding 2,781 investors.</p>.<p>The co-op is accused of not delivering any sites despite collecting Rs 180 crore from members. The registrar discovered 25 serious lapses in the administration of the co-op during its probe under Section 68 of the Karnataka Cooperative Societies Act.</p>.<p><strong><span class="bold">Rs 180-crore scam?</span></strong></p>.<p>Between 2011 and 2015, the society signed multiple agreements with M and M Bangalore Pvt Ltd to develop three housing layouts: one in Mysuru and two in Bengaluru. The society deposited over Rs 180 crore without taking any surety or registering the land.</p>.<p><strong>Also Read |<a href="https://www.deccanherald.com/city/bengaluru-crime/bluru-man-stabbed-and-gutted-by-muggers-in-brazen-attack-1213641.html" target="_blank"> B'luru: Man stabbed and gutted by muggers in brazen attack</a></strong></p>.<p>However, the members were not privy to these agreements.</p>.<p>The society is accused of signing four agreements with the developer without obtaining approval in the annual general meeting and revising the agreement without taking the consent of the directors. </p>.<p>Shankar Nayak, president of the society, said they are preparing the compliance report and would comment on the issue shortly.</p>