Daijiworld Media Network - Puttur (SP)

Puttur, Nov 12: District president of Raita Sangha Hasiru Sene, Sridhar Shetty Bailuguttu, said that the state high court (HC) has stayed the auction of fixed assets of South Kanara Agricultural Cooperative Marketing Society here that was scheduled to be held on Friday November 13. He added that with this, his organization has tasted temporary success in its fight for justice, and hoped that those who were involved with scandal in the society will soon face the consequences.

The process of auction of the society's 67 cents of land along with building located here had been begun as the society had failed to repay Rs 4.50 crore loans raised from South Kanara District Cooperative Central Bank. Farmer leaders had approached the HC, seeking to stay auction process in which property worth Rs 18 crore was proposed to be auctioned to set off loan amounting to Rs 4.5 crore.

"Over 3,000 members have invested share capital in the society. The society was running profitably but the board of directors, through an illegal transaction, sold areca nut worth Rs 7.5 crore to merchants based in Gujarat. These merchants failed to pay the sale proceeds to the society, as a result of which the society has faced heavy losses. Farmer leaders had demanded an investigation led by top officials or Lokayukta should be ordered into the above scandal," he stated.

Shetty said that the HC, in its stay order, said that auction of fixed assets of the society should not be conducted till the loss is investigated. On Saturday, a rally and protest was held in front of the office of the sub-divisional officer here under the leadership of Hasiru Sene, seeking suspension of auction and urging the government to come up with plans to rejuvenate the ailing society.