The Office of the Central Registrar of Cooperative Societies (CRCS) has issued a notice initiating winding-up proceedings against the Steel Authority of India Employees’ Cooperative Credit Society Ltd., Kolkata, citing extensive financial irregularities, statutory violations, and failure to comply with multiple orders.
According to the notice dated 28 November 2025, the Society, registered under the MSCS Act, 2002, has been under scrutiny following numerous complaints by members regarding non-payment of matured deposits and alleged mismanagement.
An inspection conducted by the Registrar of Cooperative Societies, West Bengal, under Section 108 of the MSCS Act revealed illegal membership admissions, risky and unauthorized investments, suspicious banking practices, and election-related irregularities. Despite repeated communications, the Society failed to respond.
The Cooperative Ombudsman had earlier directed the Society on 17 February 2025 to repay matured deposits with interest. Subsequent orders from CRCS on 14 August 2025 and 11 September 2025 directing the newly elected Board to settle dues and take corrective action were also ignored.
A detailed inquiry by the Institute of Public Auditors of India (IPAI) exposed serious financial mismanagement, including unauthorized schemes, speculative investments, diversion of funds to an illegally constituted hospital trust, and prolonged dominance of the former chairman. Fraudulent accounting practices, manipulation of income, and violations of cooperative principles were also flagged.
Further, a forensic audit ordered by the Delhi High Court for FY 2020–21 to 2024–25 found massive irregularities, including unverifiable deposits of Rs 320.89 crore, irregular loans of Rs 36.51 crore to an ineligible foundation, manipulated asset valuations, loss-making property transactions, and a net deficit of Rs (-)3,64,84,03,714. Numerous statutory violations, including non-filing of mandatory returns and sanctioning loans beyond permissible limits, were also reported.
Citing these findings, the Central Registrar has concluded that the Society is no longer functioning in accordance with the MSCS Act or cooperative principles. The CRCS has invited objections within 15 days of the notice being uploaded on crcs.gov.in, failing which winding-up proceedings will formally commence.
All the earlier board of directors are to be penalized and severe action is initiated against them for keeping the audit reports till 2022 secret. The policy deviations are not at all discussed. The properties were sold without approval. All depositors are sr citizens and were made members even after their retirement which is against the policy. Immediate action by depositors are required in filing FIR against the earlier board of directors.
Immediate stringent actions needed to be taken against the former Board members of Sail cooperative society who have made financial irregularities & syphoned of money of retired sail employees & their spouses. by attachment of their property & paying back to the investors who are still in deep financial troubles finding no other way to maintain their livelihood.
Please note winding up of the Steel Authority of India Employees’ Cooperative Credit Society Ltd., Kolkata, is not the solutions for the all the deprived members who had deposited their hard earned money in the society but an investigation should be followed specially by ED and CBI to find out where our money got siphoned by the formal chairman/ secretary and BODs . It is our hard earned money. The investigation should be carried out seriously and justice should prevailed by punishing and prosecuting formal Chairman / Secretary and members of earlier BOD and others in it .
Dear Sir, I wish to bring to your kind attention that I am an unfortunate member of this Ispat Co operative, I am noticing that your esteemed organization is very much willing to wind up this Ispat Co operative where thousands of member’ s ( near about 14,000) life & death is involved, like I am.an widow female, all alone, no children, for money couldn’t do husband’s treatment also, now since 2022 I was asking for my entire money from Mr Jyotirmoy Chakraborty(Secretary,Chairman),Saugata Roy, Mithun Dutta & down there Sankar Bhattacharjee, Rajarshi & rest others, we all had treated this organisation as a proper Bank sort of Installation but definitely not as a cheat fund, money laundering place or a big den of scam, we believed this Institution and since 2022 Mr Jyotirmoy Chakraborty, who has given all false promises to this 14,000 members that everyone will get money, meeting after meeting, false promises he has given that he will sale Hospital, other properties & give the money to everyone, how he can sale or mortgage Co operative’ s property as an individual till date, many of us are dying without treatment, proper food, medical assistance, servant’ s help .We need justice for this situation,I will have to commit suicide now, Mr Jyotirmoy knows everything of my situation, you all can find out from him, many has already died & we are going to die if you take such decission of winding up, request please consider & help this present board giving few hundred crores as you are the main authority who can save us, Sail by any chance is not involved so why they will give money, nothing has come out doesn’t t mean no fradulance has happened that you are also aware of this big scam, once again don’ t even think of wind up & think about this 14,000 members ( which has been created by Jyotirmoy Chakraborty who told that by Law has given him right to do this crime) save us, help us as human being, thanks & Regards Srimati Mukherjee
Basic thing is inaction by Govt of India Body CRCS who are looking after financial aspects of all Co-op Societies registered with them. They severely failed to perform their statutory duties reposted in Multi State Cooperative Societies Act 2002. Since 2021 they just sitting on the knowing fully well the financial irregularities in the case of SAIL Employees Cooperative Credit Society Limited. Now in the end of 2025 they suddenly came with decision of winding up of instant Cooperative Credit Society without any solution of refund of members fund lying abortive with SAIL EMPLOYEES COOPERATIVE CREDIT SOCIETY LIMITED. CRCS should explore all avenues so that Deposits with the Co-op Society is fully refunded to registered members. Till such time there will be no winding up operation to be implemented by CRCS.
It is in the interest of Sr.citizen depositors and the money deposited by them are from retirement funds, it is requested that winding up of Steel Authority Employees cooperative society may be deferred in the interest of retired members/depositors. Further action may be taken against the then Secretary to get the the full details of investment, etc. It is also to point out that the Society has given loans to Employees os SAIL and the amount due from them us to be recovered. Request that CRCS not to take action for winding up of Steel Authority Employees cooperative society.
Dear Sir, Request, if your esteemed institution force to wind up this Ispat Co operative without any fault of few thousand depositors,cause they treated this Co operative as a Bank, never imagined of any fradulance,
I oppose winding up
We want punishment of jyotirmoy Chakraborty, Saugata Roy, Mithun, Sankar Sen & all past BODS
WE WANT OUR MONEY BACK
I oppose winding up..we want our money back. Please help us.
I oppose winding up.we wa t our money back.
I am also oppose winding up
We want punishment of jyotirmoy Chakraborty, Saugata Roy, Mithun, Sankar Sen & all past BODS & all the staff also
WE WANT OUR MONEY BACK
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The SAIL Employees Cooperative has been completely devastated by the erstwhile BoDs. But CRCS can’t leave their responsibilities just put an order for winding up. It’s 50% responsibility by the CRCS too. If they, CRCS, activate like a head of the instructions, then the situation may not be just now.
CRCS has full responsibile for it’s ruined.