Vizianagaram: The district authorities have been conducting an inquiry into the irregularities that occurred in the Ravivalasa Primary Agriculture Cooperative society of Garugubilli Mandal of Vizianagaram district. The government has found that around Rs 7 crore, which belongs to the society, was given to benami farmers.

M. Tulasi, chairman of the district cooperative central bank, is from the Congress and a follower of former PCC chief Botsa Satyanarayana, who belongs to the same village.

Farmers who have not taken loans and are getting notices from banks to pay loans are irked by the PACS’ governing body. They have demanded that the notices be withdrawn.

The Ravivalasa PACS, which is under the management of Congress supporters, has issued loans worth Rs 6 crore to farmers in the last two years. The society has around 7,000 members and its annual turn over is Rs 18 crores.

However, society directors and some of the cooperative’s employees, have joined hands and issued loans to benami farmers. Now, farmers who have not taken loans, have been served notices demanding repayment of the loan amount.

They have questioned the governing body about the irregularities in the society. Later, the government decided to conduct an inquiry by questioning around 4,500 members in the society. As part of this inquiry, 50 farmers are being questioned daily if they have taken any loans.

Enquiry officer D. Chinnayya said that the process will continue for some more days. P. Sarojini and R. Chinnammi of Karivalasa village said, “We did not take any loan from the society we got notices informing us to pay Rs 75,000 each.”