In a recent order, the Central Registrar of Cooperative Societies (CRCS) Rabindra Kumar Agarwal rejected the registration proposal of Chaitanya Multistate Cooperative Credit Society Limited due to non-compliance with key provisions of the Multi-State Cooperative Societies (MSCS) Act, 2002.
The CRCS issued the order following directions from the Appellate Authority and Secretary (Cooperation) dated 13 March 2025.
As per the order, the verification process involved contacting all listed members from the two proposed states of operation — Maharashtra and Karnataka — using official landline numbers provided in the application (No. MSCS/08/2024/6 dated 14 August 2024) submitted via the CRCS portal.
Out of 153 calls made (103 in Maharashtra and 50 in Karnataka), only 4 members from Maharashtra could be verified. A staggering 149 members could not be confirmed — including all 50 from Karnataka and 99 from Maharashtra.
Citing this failure in member verification, the Central Registrar stated that the proposed society — with its registered address at Bhand Vasti, Deolali Pravara, Morwadi, Rahuri, Ahmednagar, Maharashtra-413716 — does not meet the eligibility criteria under the MSCS Act and Rules, and hence, cannot be considered for registration.
However, the Registrar clarified that the society may submit a fresh proposal in the future, which shall be considered in accordance with the MSCS Act, 2002 and MSCS Rules, 2002.
The order highlights the Ministry’s growing emphasis on due diligence and member authenticity during the registration of multistate cooperative societies, aiming to prevent fraudulent or shell entities from obtaining approval.
Interesting development! It’s concerning to see the CRCS reject the registration of Chaitanya Multistate Co-op, and it raises important questions about the regulatory framework for such cooperatives.