The Ministry of Cooperation has moved to initiate the winding up of Sneha Multistate Cooperative House Building Society Ltd., Chennai, after inspections revealed that the society was not functioning from its registered or declared office addresses.
The decision follows a complaint forwarded by the Reserve Bank of India (RBI) in May 2023 through its CMS portal, which raised multiple red flags about the society.
RBI’s observations included discrepancies in the registered and website-declared office addresses, dubious use of Nidhi Company terms and conditions despite being a multi-state cooperative, and reports that members were issued ICICI ATM cards in the society’s name.
Despite repeated reminders from the Central Registrar of Cooperative Societies (CRCS), the society denied the allegations and accused the complainant of spreading misinformation through a fake website.
However, when the Regional Office of the National Cooperative Development Corporation carried out an inspection, it found that the society had vacated its registered premises in Chennai and was not operating at the alternate Madurai address mentioned on its website. Local inquiries confirmed that the society had left the premises over a year ago.
In light of these findings, Central Registrar of Cooperative Societies Rabindra Kumar Agarwal has decided to initiate the winding-up process of the society under the Multi-State Cooperative Societies (MSCS) Act, 2002.
The CRCS notice states that any objections must be filed within 15 days of the publication of the order on the official website (crcs.gov.in). If no response is received, it will be presumed that the society has no objections, and further action to wind up the society will proceed.
