As Dr. Abhilaksh Likhi, Central Registrar of Cooperative Societies has ordered liquidation and winding up the Gujarat headquartered Adarsh Credit Cooperative Society, lakhs of innocent depositors are at a loss to understand its implication for them.
Central Registrar has appointed H.S.Patel, IAS (Retd.), as the liquidator in the society. The liquidator shall finalize the liquidation proceedings within a period of one year and shall also submit status report showing the progress made in liquidation of the society on quarterly basis.
Meanwhile, the officials of the Adarsh Co-op have launched a campaign by collecting investors’ fake signature on a form which declares faith in the current management of the co-operative and requests the govt to stop the liquidation process, informs Varsha Khandelwal, one of the victims.
The form (a copy of which is with Indian Cooperative) talks of holding election and electing a new team to oversee the affairs of Adarsh Credit Co-operative.
The order issued by Central Registrar on 6th December 2018 reads, “Adarsh Credit Cooperative Society has been given reasonable opportunity of hearing, however, the society has failed to provide any satisfactory explanation/justification for the irregularities pointed out. The society has been found to indulge in misusing the funds of the members for personal gains and has violated Cooperative Principles and the provisions of the MSCS Acct, 2002.”
“Now, therefore, after careful consideration of above facts and in the fitness of things, I Dr. Abhilaksh Likhi, Central Registrar of Cooperative Societies, in exercise of powers conferred under sub-section 2(b) of section 86 of the MSCS Act, 2002, direct to wind up the above society and hereby appoint Shri H.S. Patel, IAS (Retd.), Plot No. 338, Sector No. 8B, CH Road, Gandhinagar, Gujarat – 382007, as Liquidator under section 89(1) of the Act for winding up of the above society as per the provisions of the MSCS Act, 2002 & Rules made there under”, it further reads.
Central Registrar in his letter further said, according to reports of SFIO and IT Department, it is evident that the society has failed to function according to provisions of the MSCS Act, 2002 and cooperative principles as enumerated in the First Schedule of the said Act.
In his letter Registrar clearly mentioned that, “The reports of Income Tax Department dated 02.07.2018 and 08.08.2018 clearly establish that the activities of the society are not for the benefit of the members of the society but for the individual benefit of Shri Mukesh Modi and his family members. The society is not functioning as a cooperative society”.
“The management of the society is not only withdrawing the money of the depositors but also siphoning off these deposits in the form of giving consultation fee, gold and loans to the companies with relatives for Shri Mukesh Modi and their family members”, said Central Registrar while citing the reports of IT department.
Mukesh Modi and his relatives have registered more than 125 Pvt. Ltd. Companies with their registered addresses at different locations. On investigation, it reveals that most of these companies have no business activities at their given address and the Modi group failed to produces their books of account during the course of search, the letter further reads.
Meanwhile, Adarsh Cr. Coop Society Chairman Mukesh Modi, MD Rahul Modi and Vivek Harivyasi were arrested on December 10 by the SFIO after being accused of siphoning off over Rs 230 crore from 22 companies registered in Gurgaon and other entities, and the amount can be higher as well.
Indian Cooperative is also attaching a copy of the letter for its readers.