The president and secretary of a Primary Agricultural Cooperative Society in Coimbatore were arrested on Tuesday along with another person on charges of embezzlement of funds to the tune of Rs. 3.11 crore.
They were among the 17 persons charged in the case by the Commercial Crime Investigation Wing - Criminal Investigation Department (CCIW)- (CID).
According to sources, the PACS at Malumichampatti had around 2,000 members, most of them are farmers in and around the area.
The members had gold ornaments totalling more than eight kilograms for loans.
However, when some of them completed repaying their dues and sought the return of their ornaments, the Malumichampatti PACS secretary R. Geetha (45) claimed to be sick and closed down the office.
Following this, inquiries by the farmers revealed that Geetha, her husband Ravichandran (49), both hailing of Thanneerpanthal near Othakkalmandapam and S. Murugesan, (61) president of the Chettipalayam PACS, had allegedly swindled their ornaments with private financial firms and obtained loans to the tune of Rs.3.11 crore.
The issue came to light on December 12. 2014 after which the farmers lodged complaints with P. Gowraraju, Deputy Registrar of Co-operative societies, Coimbatore circle.
He lodged a complaint with CCIW - CID, which registered a case and invoked various sections of the Indian Penal Code.
They have already attached properties belonging to the trio.
CCIW - CID sources said that the remaining persons accused in the case, who had helped the trio swindle the gold, would be arrested soon. The three persons arrested have been remanded in custody. Further investigations are on.
