The Central Registrar of Cooperative Societies (CRCS) has ordered the winding up of Sai Seva Multi State Co-operative Credit Society Ltd., based in Kashti, Shrigonda taluka, Ahilyanagar district of Maharashtra, citing serious financial irregularities, suspected misappropriation of funds and persistent statutory and governance failures.
In an order issued under Section 86 of the Multi-State Co-operative Societies Act, 2002, Central Registrar Shiv Pal Singh appointed the Assistant Registrar, Cooperative Societies, Shrigonda, as the Liquidator under Section 89(1) of the Act.
The action follows inspection findings and statutory audit reports for three consecutive financial years—2021-22, 2022-23 and 2023-24—which proposed the lowest audit classification, ‘D (Bad)’, accompanied by disclaimer opinions.
The audit reports flagged substantial related-party lending and exposures, including approximately Rs 247.70 crore involving the General Manager’s family and controlled entities, Rs 10.58 crore linked to the Chairman’s family, Rs 28.89 crore involving Directors and their associates, and Rs 20.79 crore involving the Cashier’s family members.
Other irregularities included fictitious loan accounts, bogus land development and building advances, proxy borrower loans, round-tripping through a sister concern, accommodation entries and suspected diversion of society funds.
The inspection also highlighted unsecured loans to Directors and their relatives, violations of borrowing and exposure limits, failure to maintain statutory investments and non-compliance with audit, employee and membership-related requirements.
The Society had opposed the proposed winding-up proceedings, referring to an FIR registered at Shrigonda Police Station and proposing recovery measures, fresh elections, concurrent audits and a time-bound revival plan.
However, the CRCS observed that the representations failed to establish satisfactory recovery arrangements, repayment capacity towards depositors and members, or a viable revival mechanism.
The Inspection Report was also forwarded again in August 2026 for a detailed response, but the postal communication was returned with the endorsement ‘Refused RTS’.
The Liquidator has been directed to take custody of the Society’s properties, records, books and other assets and endeavour to complete the liquidation proceedings within three months, submitting a progress report to the CRCS.
