Firoz.T.Totanawala The Bangalore Metro Reporter THE AUDITING BLUNDERS AIRPORT KSTDC TAXI DRIVERS’ WELFARE ASSOCIATION, BOGUS ACCOUNTS- BOGUS AUDIT

By Firoz.T.Totanawala

The Bangalore Metro Reporter

THE AUDITING BLUNDERS 

AIRPORT KSTDC TAXI DRIVERS’ WELFARE ASSOCIATION, BOGUS ACCOUNTS- BOGUS AUDIT 

 After getting exposed for what they are, the Neelakantappa gang who treated the Bangalore Airport KSTDC Taxi drivers Welfare Association as their personal property, have tried to legitamise their illegal acts by submitting an audit report for three years - 2009 to 2011, duly certified by a Chartered Accountant to the Labour Commissioner, who simply admitted the same. If one were to take a glance over the audited (?) accounts, one can straightaway say that the accounts are bogus, fabricated and mischievous. And one can also say that the auditing firm - Deva Sheela Associates, Chartered Accountants have committed grave blunder and violations by certifying the bogus accounts... 

R.Neelakanta and five others had registered Bangalore Airport KSTDC Pre-Paid Taxi Drivers Welfare Association in 2002 with the Assistant Labour Commissioner, Circle-3. Since then, they have not held any Annual General Body Meetings, elections and submitted audited accounts to the authorities for renewal of their registration. The registered office of the Association was the residence of R.Neelakanta. The Association was registered under the Indian Trade Union Act and as per the Act, if the Associations fail to hold AGM, elections and submit audited accounts for three years, the department has to cancel the registration, after giving due notice and opportunity. 

 But nothing was done. Only after we filed the RTI application, the Assistant Labour Commissioner (ALC) realised his folly and it is said that notices were issued to R.Neelakanta only about two months back. As already said the Association has neither held AGM nor submitted the Accounts from 2002, for the simple reason that they have never transacted anything in the name of the Association. They have floated another benami Association - Bangalore Airport KSTDC Taxi Drivers Welfare Association, suffixed by Registered. In all their correspondence with government authorities including Airport and Taxi drivers, they have flaunted “Bangalore Airport KSTDC Taxi Drivers Welfare Association (R)” and the registered office is, again the residence of R.Neelakanta. Curiously, R.Neelakanta started officiating as R.Neelakantappa. It is in this bogus Association’s name, the Neelakantappa gang collected money from the Taxi Drivers cum owners. As every correspondence and collections and even official agreements were done with the KSTDC in the name of this bogus association, nobody had even imagined that the association was a bogus one and they are being taken for a ride. One can imagine the facade of legitimacy of this bogus association by the fact that even the KSTDC has recognised this Association without insisting on Registration Certificate and other legal documents. Only after we exposed the bogus nature of the Association did people wake up and took notice. Interestingly, the Neelakantappa gang who were being exposed by the media by then, tried to legitimise their illegal actions by calling the AGM and placing the audited accounts of the Association for the years 2009, 2010 and 2011, duly certified by a Chartered Accountant B.Satyanarayana Dev of Deva Sheela Associates. 

 Wonder of wonders, they have submitted the audit of accounts for three years that is 2009 to 2011. And what about the accounts from 2002 to 2009? There is no answer. If one peruses the audit report from the first glance, one can say that it is a bogus report. The accounts (?) of the bogus Association are shown as the accounts of the registered Association. Had the CA taken the pains to glance the accounts, he would have seen that all the receipts and vouchers are in the name of the bogus Association that is- Bangalore Airport KSTDC Drivers Welfare Association. Not a single pie was transacted in the name of the registered ‘Bangalore Airport KSTDC Pre Paid Taxi Drivers Welfare Association’ since its registration in 2002. In that case, one definitely doubts the integrity of the Chartered Accountant who had blindly signed this undated certificate. One wonders how this CA has compiled and audited the accounts of this non-existing Association. 

 The Chartered Accountant audit shows the total assets, that is funds, at 49.19 lakhs at the end of the 31st December 2011! Mind it; this is the audit report of the ’defunct’ Bangalore Airport KSTDC Pre Paid Taxi Drivers Welfare Association! To an ordinary person, the report reflects the functioning of the Association and the mobilisation of substantial fund. 

 If one takes a glimpse at the audit report, one finds it a bogus one of the highest order. The following are few such cases. There is a deposit of FD of Rs.20 lakhs in SBI by Neelakantappa gang in the name of the bogus association. Other FDs totaling Rs. 42 lakhs were placed by the gang in the name of the bogus association. At least the CA should have taken a look over the FD receipts and he would have known the truth. But the CA simply showed this FD as belonging to ‘Pre Paid’ association which is a blunder of the highest order. 

 In 2009 report, membership fee collection is shown as Rs.22,000, Drivers ID card fee collections at Rs.17,000 and donations at Rs.96,000, as on 31.12.2009. The Neelakantappa gang has shown Rs.10,730 as Nutritional expenses! Nobody knows what this nutritional expense is! As on 31.12.2009, the total balance was 1.74 lakhs. 

 It is in 2010, the association has increased its balance to 22.72 lakhs! This is simply unimaginable. The hard fact is that this enormous increase was the result of unimaginable membership fee collected by the Neelakantappa gang. The membership fee collected was Rs.16,500. There is no separate receipt for collection of membership fee. Rather the Neelakantappa gang used to issue receipts in the name of the bogus association, treating the membership amount as donations! 

 By 31st December 2011, the transactions, nay, collections had crossed 50 lakhs. This year, the membership fee collections was Rs.65,000 and the donations Rs.27.24 lakhs! Mind it; the donations are from the drivers! Here again, the Neelakantappa gang had given imaginary expenses - like Rs.64,000 towards nutritional expenses, Rs.46,000 as office rent etc. More than anything, they have shown Toll fare protest expenses at Rs.32,000! This is simply absurd. 

 And now? Their game is up. Already some drivers have filed complaints against the Neelakantappa gang. The labour department is probing the non submission of accounts, non holding of AGMs, non submission of accounts since 2002 etc. There are other enquiries against Neelakantappa gang as well. The huge misappropriation of funds etc. too will have to be subjected to a police probe. There are all the chances of Neelakantappa gang emptying the FDs worth 40 lakhs in Banks placed in the name of the bogus Association. Despite the fact that the Association was not a registered one, one does not understand how the banks have allowed them to deposit the huge amount and operation of accounts! One wonders how the Chartered Accountant has certified the FDs of the bogus Association in spite of the tell tale evidences. 

Of course, the KSTDC MD Devaiah took some remedial measures. He has kicked out Neelakantappa from the KSTDC services and shifted the ATO Chikkmath who was an active partner in Neelakantappa gang’s money making business. 

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