Looms of Ladakh Women Cooperative registered in 2017, has been facing grave charges of financial misconduct and conflict of interest. Ramaswamy associated himself with the Cooperative without the prior approval of the competent authority
LEH: In a significant administrative development concerning the Looms of Ladakh Women Cooperative Ltd, IAS Officer Prasanna Ramaswamy, has been removed as the Chairman of the Cooperative’s Governing Body. The current Deputy Commissioner, Leh, will now take charge as Chairman, in accordance with the Articles of Association of the Cooperative.
According to sources, “The Looms of Ladakh Women Cooperative registered in 2017, has been facing grave charges of financial misconduct and conflict of interest. Accordingly, the matter was taken up by the UT Administration with the Ministry of Home Affairs (MHA) for examination and for appropriate action in view of the apparent conflict-of-interest issues involving the officer.”
Sources revealed that Prasanna Ramaswamy, a 2010-batch IAS officer, was serving as the Registrar of Cooperative Societies (RCS), as well as Deputy Commissioner, Leh, during 2015-2017. The registration documents record Ramaswamy and his spouse, Abhilasha Bahuguna, as co-founder members of the Society.
According to records examined by the UT Administration, the Looms of Ladakh Women Cooperative has also received significant financial support for activities relating to Pashmina and wool development, sources said.
According to its audited financial statements, the Cooperative reported receiving Rs 50.76 lakh in grants, donations and contributions during FY 2022-23, Rs 71.34 lakh during FY 2023-24, and Rs 44.99 lakh during FY 2024-25. Taken together, these reported receipts amount to approximately Rs 1.67 crore over the three financial years.
Separately, documentary records cited by NABARD establish that Rs 107.50 lakh (Rs 1.075 crore) was sanctioned as grant assistance to the Cooperative under a project for “Strengthening and Broad-basing Pashmina and Wool Value Chain in Leh.” The project included strengthening production and value-chain activities and envisaged the establishment of a 40,000 sq. ft. Work Studio and Training Centre at Chushul, Leh, sources disclosed.
With the current Deputy Commissioner, Leh, now taking charge as Chairman, the Cooperative’s books of accounts and membership records can be examined in greater detail. The preliminary examination has proposed verification of whether any dividend or other financial benefit was claimed by the former officer or his spouse, along with verification of the list of members to establish the bona fides of the membership.
Highly placed sources informed that IAS Officer Prasanna Ramaswamy had associated himself with the Cooperative without the prior approval of the competent authority, as required under the applicable provisions of the All India Services (Conduct) Rules, 1968. The available records do not contain the requisite approval or sanction, if any, for the officer’s association with a society involved in seeking grants, financial assistance and contributions, they added.
The preliminary examination of records has further indicated that the officer, while serving as Registrar of Cooperative Societies, was among the persons associated with the registration of the society and that his wife was also listed as a co-founder member, they further said.
At the same time, the District Collector, Leh, was designated as Chairman, while the officer himself was holding that position. The Administration has accordingly viewed the circumstances as raising a prima facie conflict-of-interest concern, particularly since the Cooperative subsequently received financial assistance from Government and non-governmental institutions.
The records also flag an issue concerning the Cooperative’s application for Geographical Indication (GI) registration for Ladakh Pashmina Textiles. The preliminary examination noted that the original application indicated approval from the Director Industries, whereas the records examined did not establish that such approval had actually been obtained. The matter has accordingly been brought to the attention of higher authorities for appropriate examination.
