Leh: Nearly two months after his transfer from Jammu and Kashmir to Lakshadweep amid questions raised over the registration and functioning of the Looms of Ladakh Women Cooperative Ltd, IAS officer Prasanna Ramaswamy has been removed as chairman of the cooperative’s governing body, officials said on Tuesday.
Leh Deputy Commissioner (DC) Romil Singh Donk will now take charge as chairman in accordance with the Articles of Association of the cooperative, which provide for the deputy commissioner to serve as its ex-officio chairman, the officials said.
The development comes amid an ongoing controversy over the cooperative’s registration and functioning, with the Ladakh Administration having referred the matter to the Ministry of Home Affairs (MHA) for examination and appropriate action over alleged irregularities and apparent conflict-of-interest issues involving the officer.
Ramaswamy, a 2010-batch IAS officer, was serving as Registrar of Cooperative Societies (RCS) as well as deputy commissioner, Leh, during 2015-2017, when the cooperative was registered in 2017.
According to officials, the registration documents list Ramaswamy and his spouse, Abhilasha Bahuguna, as co-founder members of the society.
The administration has questioned the officer’s association with the cooperative, stating that departmental records do not indicate prior approval from the competent authority for such an association. Since the cooperative’s Articles of Association designated the deputy commissioner, Leh, as its ex-officio chairman, Ramaswamy also became its chairman while serving as DC.
The Looms of Ladakh Women Cooperative, however, has rejected the allegations, asserting that its decade-long work to strengthen Ladakh’s Pashmina sector has been carried out in accordance with the law and under the oversight of statutory authorities.
The cooperative was established as a democratically governed, women-owned producer institution to benefit Pashmina herders and artisans, and has since functioned independently under elected management, it said.
On the issue of the officer’s association with the cooperative, it maintained that he only provided voluntary guidance during its establishment, never held an elected position and completely dissociated himself from its affairs after registration. The cooperative also said no adverse or conclusive finding had been recorded against it in relation to the issues raised by the administration.
Ramaswamy, who was serving as Commissioner Secretary of the Tribal Affairs Department in the J&K government since June 2024, was transferred to Lakshadweep by MHA on August 12.
Quoting the outcome of the records examined by the Ladakh UT Administration, the officials said the Looms of Ladakh Women Cooperative has received significant financial support for activities relating to Pashmina and wool development.
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, the officials said.
Separately, they said the documentary records cited by NABARD establish that Rs 107.50 lakh (over Rs 1 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, the officials said.
They said 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, the officials said.
The available records do not contain the requisite approval or sanction, if any, for Ramaswamy’s association with a society involved in seeking grants, financial assistance and contributions, they said.
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, the officials said.
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, they said.
The officials said 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.
However, the Looms of Ladakh in its previous statement claimed that the application for “Ladakh Pashmina” in Classes 24 and 25 was initiated through the Ministry of Textiles with support from the Handloom Export Promotion Council.
It said the cooperative furnished the required affidavit and technical documents to the GI Registry and maintained that both the Industries Department, UT Ladakh, and the cooperative were subsequently recorded as registered proprietors/applicants.
The cooperative said it never claimed that prior departmental approval had been obtained and that it has submitted a detailed response to the procedural issues raised by the Industries Department. It said the matter remains under consideration, with no adverse or conclusive finding recorded against it.
