In a significant development, the Central Registrar of Cooperative Societies Rabindra Kumar Agarwal has ordered the winding up of Shri Sairam Urban Multistate Cooperative Credit Society Ltd., based in Beed, Maharashtra, under Section 86 of the Multi-State Cooperative Societies (MSCS) Act, 2002.
The decision follows multiple complaints and official reports highlighting the Society’s failure to repay matured deposits to its depositors and the closure of all its branches in Beed district.
A letter dated 23rd July 2024 from the Collector & District Magistrate, Beed, raised the alarm about the Society’s inoperative status and non-compliance with statutory reporting obligations, such as the submission of the annual and audit reports for the financial year 2022–23.
Despite a formal request issued on 21st August 2024 for explanation, the Society failed to respond. An inspection was also sought by the Commissioner for Cooperation & Registrar of Cooperative Societies, Maharashtra, but the inspection could not be completed as the head office and branches were found closed.
As no objection was received even after a public notice issued on 15th January 2025 warning of possible winding up, the Central Registrar proceeded with the dissolution process.
Based on a recommendation from the Maharashtra Cooperation Department, Deputy Registrar, Cooperative Societies, Beed Taluka, has been appointed as the liquidator under Section 89(1) of the Act.
The liquidator has been directed to carry out the liquidation process in accordance with the MSCS Act and submit quarterly progress reports to the Central Registrar’s office.
This order, issued on 14th May 2025, reflects the seriousness with which authorities are now dealing with non-functioning and defaulting multistate cooperative credit societies.
The Shri Sairam Urban Multistate Bank, which operated over 20 branches across Beed and other districts, has been closed down. The crisis erupted after reports of a scam surfaced, leading to the sudden shutdown of all branches.
The abrupt closure triggered panic among depositors, many of whom rushed to the bank in an attempt to withdraw their money.
Established over 13 years ago, Sairam Urban Bank had mobilized deposits worth Rs 152 crore.
This incident is the latest in a series of cooperative financial institutions facing turmoil due to alleged irregularities and mismanagement. In recent times, several credit cooperative societies, including Dnyanradha Multi-State Credit Cooperative and Jijau Maa Saheb Multi-State Co-operative Credit Society, have also come under the scanner for similar issues, raising serious concerns about the governance and regulatory oversight of such institutions.
