The Office of the Central Registrar of Cooperative Societies (CRCS) has initiated winding-up proceedings against three multi-state cooperative societies for alleged violations of the Multi-State Cooperative Societies (MSCS) Act, 2002, marking another significant step in the Centre’s crackdown on non-compliant cooperative institutions.
The societies facing winding-up action are Jivan Multi State Multi Purpose Cooperative Society Ltd., Swapnavedh Multi State Cooperative Credit Society Ltd. and KSB Multistate Cooperative Credit Society Ltd. The action follows allegations related to non-repayment of depositors’ dues, failure to comply with Cooperative Ombudsman orders, non-submission of statutory returns and continued non-cooperation with authorities.
According to notices issued by the Central Registrar, Jivan Multi State and Swapnavedh Cooperative Credit Society allegedly failed to honour directives passed by the Cooperative Ombudsman concerning repayment of depositors’ money. The notices stated that both societies did not file appeals against the Ombudsman’s orders and also remained absent from several hearings conducted by the CRCS through video conferencing.
Authorities further noted that the two Maharashtra-based societies had failed to submit mandatory annual returns under Section 120 of the MSCS Act, 2002. Officials said such non-compliance raised concerns regarding transparency, financial accountability and adherence to statutory obligations required of multi-state cooperative institutions.
In the case of KSB Multistate Cooperative Credit Society, an inspection conducted by Haryana cooperative authorities reportedly found that the society was not functioning from its registered office located in Panchkula. The inspection also revealed that the society had failed to furnish mandatory annual returns for the financial year 2024-25 despite repeated instructions from authorities.
The CRCS has invited objections, if any, within 15 days from the publication of the notices on its official website before further action is taken under the provisions of the MSCS Act, 2002. Officials indicated that the process reflects the Ministry of Cooperation’s continued efforts to strengthen oversight and protect the interests of depositors affected by irregularities in cooperative institutions.
The latest action is being viewed as part of a broader regulatory push aimed at improving governance standards in the cooperative sector. Over the past few years, authorities have intensified scrutiny of multi-state cooperative credit societies amid rising complaints regarding delayed repayments, financial mismanagement and operational irregularities.
Apart from the winding-up proceedings, the CRCS has also reportedly initiated action against Saiseva Multi-State Cooperative Society over alleged financial irregularities. The Office of the Central Registrar issued a show-cause notice to Saiseva Multistate Co-operative Credit Society Ltd. following an inspection that allegedly uncovered serious financial irregularities and violations of the MSCS Act, 2002.
Observers say the recent measures underline the government’s attempt to restore confidence in the cooperative sector by ensuring stricter compliance with statutory norms and safeguarding depositor interests.
