In a strong move to protect depositor interests, the Office of the Cooperative Ombudsman has directed Godavari Multi State Cooperative Credit Society Ltd., Beed to repay Rs 1.29 crore with interest to Latur Multi State Cooperative Credit Society Ltd., Latur within 30 days.
The order, issued on Friday by Cooperative Ombudsman Alok Agarwal, comes after prolonged non-payment of a matured deposit.
The dispute dates back to June 2023, when the Latur-based society invested Rs 1 crore in a 396-day fixed deposit with the respondent. The deposit matured in July 2024, but despite repeated follow-ups, including a formal email in August 2025, the amount remained unpaid.
In its defense, the Beed-based society cited liquidity issues and pointed to an AGM resolution proposing repayment of large deposits in four annual instalments starting FY 2026-27. However, the complainant rejected the staggered plan and demanded full payment.
The Ombudsman ruled firmly that deposit repayment is a contractual obligation and must be honored on maturity. Internal resolutions or financial stress cannot override depositor rights.
The order mandates full repayment within 30 days along with a compliance report, sending a clear signal across the cooperative sector: delays in honoring deposits will not be tolerated.
