Assam: Former panchayat president arrested in alleged financial irregularities in Palashbari

Assam Police on September 1 arrested former Panchayat president Siraj Ali in connection with alleged financial irregularities involving a small savings bank operating under the Panchayat Cooperative Society in Rani area of Palashbari circle of Kamrup district. 

The arrest follows months of complaints and protests by customers who allege that they have been unable to withdraw their deposited money despite their savings accounts having reached maturity.

According to the allegations, around Rs 4.09 crore collected from customers, through agents, over several years through small savings schemes remains unpaid. The affected customers and collection agents have alleged that the money was collected under the banner of the Rani Bholagaon Gaon Panchayat Cooperative Society, with Siraj Ali, who served as its president, allegedly overseeing the operation and appointing agents to collect deposits.

The customers claim that they have not received returns on their savings since June 2023, despite repeated assurances and repayment dates given by the society.

The issue has also put the savings collection agents in difficulty, with several agents reportedly facing pressure from customers who had deposited money through them. At a press conference held by the agents at Khatiamari, they alleged that although they had deposited the money collected from customers with the institution, the customers were yet to receive their dues even after the maturity of their deposits.

The agents further alleged that the amount involved was significantly higher than what had previously been informed by president Ali. They claimed that Ali had earlier stated at a press conference that approximately ₹1.30 crore was payable to customers, while the agents now estimate the outstanding amount at around Rs 4.09 crore.

The controversy had earlier triggered repeated protests at the Bhola Gaon Cooperative Society Limited, with affected customers demanding the return of their deposits and action against those allegedly responsible.

Following the protests, an FIR was lodged against Siraj Ali at the Palashbari Police Station. The matter was also brought to the attention of Assam Chief Minister Himanta Biswa Sarma through a written complaint, with the affected residents seeking government intervention and justice.

Amid the mounting complaints, Ali had reportedly resigned from his position as the panchayat president after the controversy surfaced and handed over the responsibility to another person. However, customers alleged that the change in leadership did not resolve their difficulties in recovering their money.

Palashbari Police subsequently arrested Ali on September 1 in connection with the case. He was taken into custody and is currently being kept at North Guwahati Police Station, according to reports.