The Department of Cooperation has ordered inquiries into three cooperative societies based in Tirthahalli under Section 64 of the Karnataka Cooperative Societies Act, 1959, following allegations of financial irregularities. The allegations include accepting blank cheques from loan applicants and compelling them to sign blank stamp papers — documents that were allegedly misused at a later stage.

The three societies under scrutiny are the Sharavathi Credit Cooperative Society, the Samruddhi Horticulture Produce and Sale Cooperative Society, and the Sahyadri Multi-Purpose Arecanut Growers Marketing Cooperative Society. The enquiries have been ordered following directions from the Chief Minister's office.

In an order dated May 6, the Joint Registrar of Cooperative Societies (Urban Banks) appointed the Deputy Registrar of Cooperative Societies, Chitradurga, to probe allegations of irregularities in loan recovery by the Sharavathi Credit Cooperative Society. The inquiry officer has been asked to submit a report within three months.

Subsequently, in orders issued on May 16, the Registrar of Cooperative Societies appointed separate inquiry officers for the remaining two societies.

The Deputy Registrar of Cooperative Societies, Dakshina Kannada, has been tasked with probing the Samruddhi Horticulture Produce and Sale Cooperative Society, while the Joint Registrar of Cooperative Societies, Bengaluru, has been assigned to investigate the Sahyadri Multi-Purpose Arecanut Growers Marketing Cooperative Society. Both officers are required to submit their reports within three months.

The orders list 17 allegations against the societies, the most serious of which involve accepting blank cheques and obtaining signatures on blank documents from loan applicants and subsequently misusing them.

The inquiry was set in motion after several shareholders of these societies, including Kaneena Kadidal of Bharathipura and Pushpa D. Keerthi, filed complaints before the Registrar of Cooperative Societies and also brought the matter to the attention of the Chief Minister and other government authorities.