The Registrar of Cooperative Societies (RCS), Delhi, has ordered an inquiry into three issues concerning the Delhi State Cooperative Bank Ltd. based on a complaint submitted by Lalit Kumar on September 18, 2020.
The order dated September 30, 2026, issued under Section 62 of the Delhi Cooperative Societies Act, 2003, appoints Himanshu Ranjan, IRS, Assistant Commissioner, as the Inquiry Officer. He has been directed to examine the three issues and determine the quantum of lapses or misappropriation, if any.
The first issue concerns the extension of loans to member cooperative societies for purchasing shares of the bank, which, according to the inspection report, allegedly resulted in a reduction in the Government of Delhi’s stake in the bank’s share capital.
The second relates to the alleged transfer of 715 square yards of bank land at Nangloi to the Delhi Cooperative Marketing and Supply Federation.
The third concerns alleged irregular recruitment of relatives of bank officials, the Chairman and Managing Director, among others, during 2009-10. It also includes the purchase of four DDA flats through an alleged “open bid”, reportedly in violation of rules and resulting in alleged financial loss to the bank.
The three matters were earlier examined during an inspection under Section 61 of the DCS Act conducted by K.S. Meena, IAS (Retd.). His inspection report dated July 3, 2025 recommended initiation of an inquiry under Section 62.
The bank and concerned directors had challenged the inspection proceedings before the Financial Commissioner, GNCTD. In an order dated February 6, 2026, the Financial Commissioner upheld the validity of the Section 61 inspection and the inspection report, while directing the RCS to provide the concerned parties an opportunity to present their case before initiating the inquiry.
The RCS subsequently provided the concerned parties an opportunity to submit their views and considered the submissions received before deciding to proceed with the Section 62 inquiry.
The Inquiry Officer has been directed to complete the inquiry within 30 days from the date of the order. The bank will pay Rs 15,000 as remuneration to the Inquiry Officer.
