The Deputy Registrar, Firms, Societies and Chits, has appointed U Tiwary and Associates to conduct a thorough audit of the financial accounts of Ramlila Samity in Rajnagar. The auditing firm is required to submit its comprehensive report within a period of four weeks.
Background of the Complaint
This decisive action comes in the wake of a formal complaint lodged by former municipal corporator Rajendra Tyagi, who alleged significant financial irregularities within the society dating back to 2016. In September of last year, the registrar's office declared the committee ineffective, paving the way for further investigation.
The deputy registrar's office, exercising its quasi-judicial authority under Section 24 of the Societies Registration Act, 1860, is now delving into the matter. The committee has been explicitly directed that its office bearer is responsible for producing all records and documents requested by the inquiry officer. Non-compliance will result in punitive action.
Scope of the Audit
The appointed firm will audit all records, including assets, bank accounts, and the organisation's activities from the financial year 2016-2017 onward. This comprehensive review aims to uncover any discrepancies or misappropriation of funds.
Complainant Rajendra Tyagi, who is also the founder and former president of the Samity, has flagged serious financial irregularities. He alleges that president Jai Kumar Gupta and some executive members have been engaged in fraud and corruption since 2016, when Gupta first assumed the presidency. Tyagi stated, "Passbooks, chequebooks, other financial instruments, all invoices and estimates, details of all records showing income and expenditure and details of movable/immovable assets, membership fee books, donors' printed cash-receipt books, and all other financial records must be audited as there has been widespread embezzlement of funds after collecting donations."
Akash Vashishtha, another founding member and advocate, added that Gupta and some executive committee members collected cash donations from the public but did not maintain any records. He highlighted, "In 2023 alone, Rs 53 lakh was collected, whereas the society renewal has remained pending since July 2022." The last renewal certificate dated March 16, 2018, was valid only until July 18, 2022.
Vashishtha further emphasised, "With no renewal certificate, the society loses any recognition in law as a society, and is not entitled to collect any amount of money from the public." The audit will now determine the extent of the alleged financial mismanagement and ensure accountability.
