The Office of the Central Registrar of Cooperative Societies (CRCS) has ordered a detailed inquiry into the affairs of Agri Tourism Multi State Co-operative Society Ltd. (ATCOS), Kerala, before taking a final decision on its request for voluntary winding up.
In an order, Central Registrar of Cooperative Societies Shiv Pal Singh authorised the Institute of Public Auditors of India (IPAI), New Delhi, to conduct an inquiry into the constitution, working and financial condition of the society and identify any actions contrary to the provisions of the Multi-State Cooperative Societies (MSCS) Act, 2002.
The inquiry has to be completed within two months, following which a detailed report will be submitted to the CRCS for further action.
The matter came to the Ministry of Cooperation following complaints by depositors regarding non-payment of matured deposits.
The Kerala Registrar of Cooperative Societies, in its inspection report dated February 3, 2026, informed the CRCS that ATCOS’s registered office in Kalamassery was closed and that complaints had been received against the society at several police stations, including Thrissur, Kalamassery, Thoppumpady and Piravom. The report also estimated the society’s liabilities towards investors at around Rs 70 crore.
Meanwhile, the ATCOS Winners Association alleged that the society had collected deposits exceeding Rs 50 crore despite restrictions in its registration certificate.
It further alleged diversion of funds by promoters and directors and pointed out that 81 criminal cases had been registered in Kerala in connection with the alleged financial fraud. The association sought an independent inquiry before any liquidation proceedings were initiated.
The society, however, defended its position, stating that the amounts received were contributions from enrolled voting members and not public deposits. It maintained that its assets, including land, tourism projects, plantations and agro-industrial ventures, exceeded its liabilities. The society also cited continuing financial losses and uncertainty over its ability to operate as a going concern.
During the hearing on September 30, 2026, the CRCS questioned why the society could not repay its members if it possessed sufficient assets. The Registrar observed that an inquiry was necessary to examine the accounts, affairs and conduct of office-bearers and establish the bona fides of the voluntary winding-up request.
The inquiry has been ordered under Section 78(1B) of the MSCS Act, 2002. The final decision on the society’s winding-up request under Section 86(6) will follow examination of the inquiry report.
