During a period when Gandhian Anna Hazare is scheduled to start out a timely against corruption, a Gandhian institution in Ahmedabad has become charged with fraud.

Mahatma Gandhi started Majoor Mahajan Sangh in 1920 to combat to the rights of textile mill workers and in many cases undertook a timely to convince mill keepers to provide workers higher pay.

Today, the sangh has charged with subverting Gandhian values. Police in Ahmedabad has accused leaders in the labour union of siphoning off crores of rupees can be compensation for jobless workers of 29 closed textile mills. The FIR, filed on Saturday, has named Raman Patel, president in the sangh, its secretary Manhar Shukla, chartered accountants Amal Datt & Associates, private lender Mohanlal Shah, Bapunagar Mahila Co-operative Bank along with the HC appointed official liquidator as accused.

In accordance with the FIR, savings accounts were opened in cooperative and nationalized banks inside name of people which had never worked in a very textile mill along with the money withdrawn.

The scam been revealed when Mansukh Parmar, who retired from Calico Mills in 1988, filed a gripe for fraud and embezzlement while using Navrangpura police. He told police officers any time textile mills closed down in 1999, the Central government had create a scheme of giving employees Eighteen months salary as compensation.

The sangh was motivated to identify beneficiaries in the scheme and Parmar was one in the committees identifying workers. Parmar alleges Calico Mills had 4,949 workers who had been entitled for compensation. However, the sangh prepared a directory of 5,757 names, 808 workers over the specific number. He alleged that they was given away in the committee as he objected to this particular anomaly.

The sangh offered the inflated list on the liquidator who issued cheques without verifying names. Parmar said in their complaint that as an alternative to handing over cheques individually to beneficiaries, the liquidator gave each of the cheques on the sangh officials.

The sangh officials are actually charged with selling the cheques to your private lender for way less than. Police officials have realized that at the very least 284 cheques are actually issued inside names of people which had never worked in a very textile mill. Yet, savings accounts were opened of their names inside Bapunagar bank and Rs 1.63 crore was withdrawn.