Assam Police arrested former Panchayat president Siraj Ali on September 1 in connection with alleged financial irregularities involving a small savings bank operated under the Rani Bholagaon Gaon Panchayat Cooperative Society in Palashbari circle of Kamrup district.
The arrest followed months of complaints and protests by customers who alleged that they had been unable to withdraw their deposits even after their savings accounts matured. According to the allegations, around Rs 4.09 crore collected from customers through agents under various small savings schemes remained unpaid.
Customers and collection agents alleged that the deposits were collected under the cooperative society’s banner, with Ali, who had served as its president, allegedly overseeing the operation and appointing agents to collect the money.
The customers claimed they had not received returns on their savings since June 2023 despite repeated assurances and promised repayment dates. Several collection agents also faced pressure from customers who had deposited money through them.
At a press conference in Khatiamari, the agents alleged that the outstanding amount was significantly higher than the figure earlier stated by Ali. They claimed Ali had previously put the amount payable to customers at around Rs 1.30 crore, while the agents estimated the outstanding dues at approximately Rs 4.09 crore.
The controversy had earlier triggered protests at Bhola Gaon Cooperative Society Limited, with affected customers demanding repayment and action against those responsible. An FIR was subsequently registered against Ali at Palashbari Police Station, while residents also submitted a written complaint to Assam Chief Minister Himanta Biswa Sarma seeking government intervention.
Ali reportedly resigned as Panchayat president after the controversy emerged and handed over the responsibility to another person. However, customers alleged that the change did not resolve the issue.
Palashbari Police arrested Ali on September 1 in connection with the case. He was taken into custody and was reportedly being kept at North Guwahati Police Station.
