States » SouthPosted at: Nov 15 2026 7:28PM


Yatnal defends Rs 1,065-cr Siddhasiri investment, denies fund diversion

Belagavi, Nov 15 (UNI) Suspended BJP MLA and Siddhasiri Multi-state Cooperative Society president Basanagouda Patil Yatnal on Sunday strongly defended the society's investment of Rs 1,065.81 crore in Chincholi Sugar and Bio Industries Ltd, rejecting allegations of financial irregularities and diversion of cooperative funds to a company where his son is a director.
Breaking his silence on the observations raised by the Central Registrar of Cooperative Societies (CRCS) over the society's financial transactions, Yatnal maintained that there was no financial misconduct, violation of law or misuse of members' money, and claimed that the society had satisfactorily answered all the questions raised by the central authority.
The CRCS had specifically flagged the Rs 1,065.81-crore investment in Chincholi Sugar as a related-party transaction, observing that it was not disclosed in Siddhasiri's audited accounts. It had also sought details of the safeguards protecting the investment and the returns generated from it.
The investment has attracted attention because Yatnal's son, Ramanagouda Patil, is a director in Chincholi Sugar and Bio Industries Ltd.
Rejecting suggestions that cooperative funds were diverted to his son's company, Yatnal said the allegations stemmed from a misunderstanding about the ownership of the company's assets.
"Neither I, my wife, my two sons nor any other family member owns any land or assets in our individual names in Chincholi. All the properties are in the names of either Siddhasiri or Chincholi Sugar," he told reporters.
Yatnal said Siddhasiri received the CRCS communication on August 14, 2026, and had submitted replies addressing all the observations.
Seeking to explain the regulatory objections, he said cooperative societies converting into multi-state entities were allowed five years to comply with Central laws. Siddhasiri's transactions and audit processes were currently being carried out under State laws, and certain audit documents uploaded to the CRCS portal had differences in format and requirements compared with Central rules.
"This is not to be construed as a notice given to a wrongdoer," he said, insisting that the letter was only seeking clarifications.
On the CRCS objection to Siddhasiri operating a chit fund business, Yatnal said the activity had been separated from the cooperative society, with its directors forming a private company to carry on the business. The decision had been communicated to the central authority, he added.
He also disputed the classification of certain loans as unsecured, saying they were extended after obtaining three guarantees and five cheques. Other objections, including missing signatures of some officials on documents, had been rectified and resubmitted, he said.
The CRCS had also sought clarification on how the society was safeguarding its substantial investment in Chincholi Sugar and what financial returns it had received from it.
While Yatnal maintained that all queries had been satisfactorily addressed, the central authority's observations place the spotlight on the disclosure of the Rs 1,065.81-crore investment, its classification as a related-party transaction and the safeguards for cooperative funds.
He reiterated that Siddhasiri had neither violated any law nor indulged in financial irregularities.
UNI BDN
Tags: #Yatnal defends Rs 1#065-cr Siddhasiri investment# denies fund diversion
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