# Bengal orders audit into cooperative loan scam, bars politicians

2026-08-20T20:31:33+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The West Bengal government has ordered audits into alleged corruption in cooperative banks and announced that political leaders will no longer head cooperative bodies. Cooperation minister Ashok Kirtania alleged widespread irregularities over the past 15 years, especially in long-term loan disbursal and recovery. An FIR has been filed in Mangalkot, East Burdwan, on Chief Minister Suvendu Adhikari's instructions, with more likely. Kirtania said influential individuals linked to the previous government took loans and failed to repay, calling it a scam that victimised farmers. He warned defaulters to return money or face action. Seventeen central and 24 district cooperative banks offer long-term loans in the state, and recovery is a major concern. The minister also said politicians such as MPs and MLAs will be replaced by non-political members elected from within cooperatives. The department plans to use IT and AI for transparent recruitment to the Cooperative Service Commission after no appointments for three years.

## Indian Opinion Analysis

This move marks the first major cooperative sector shake-up under the Adhikari government, which took office last year. The ban on politicians heading cooperative bodies is significant because these posts have long been patronage tools in Bengal. Over 40 banks are affected, with total outstanding long-term loans likely running into hundreds of crore. The real test will be whether audits lead to recoveries and prosecutions, and if the AI-based recruitment system can overcome the three-year hiring freeze. Watch for the first audit report, expected within three months.

## Coverage

- millenniumpost.in <https://www.millenniumpost.in/bengal/bengal-orders-audit-into-cooperative-loan-scam-moves-for-major-overhaul-661231>
  Straight reporting of the minister's press conference and departmental plans, no editorialising or sensationalism.

This story was synthesised by AI from the source linked above.

Tags: Ashok Kirtania, cooperative banks, East Burdwan, Suvendu Adhikari, West Bengal
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