In a significant development, the Cooperative Ombudsman Alok Agarwal has issued a strong order against Gujarat based Shree Sarneshwar Credit Cooperative Society directing it to refund the matured recurring deposit amounts to more than twenty aggrieved depositors.
These individuals had approached the Ombudsman after the society failed to return their funds upon maturity.
The complainants include Ganesh Vishwakarma, Bamba Bahadur Sike, Devi Rokaya, Hema Sikke, Haresh Bahadur Bhandari, Shikha Agarwal, Shailender Kumar Bhushan, Uday Prasad Bind, and others.
They had opened recurring deposit accounts under the RI-3 plan with the society between November 2021 and February 2022, with monthly contributions ranging from Rs 1,000 to Rs 6,400. Upon completion of the deposit tenure in early 2024, the society failed to release the maturity proceeds.
The Cooperative Ombudsman Alok Agarwal, noted in his order that despite repeated requests, the society neither refunded the maturity amounts nor provided any response to the complainants. Further, notices and reminders sent by the Ombudsman’s office to the society’s offices in Valsad (Gujarat) and Sirohi (Rajasthan) were returned undelivered, bearing remarks such as “Addressee Left” and “Left RTS”.
The Ombudsman observed that complaints are continuously being received from members of the society regarding non-refund of deposits. He stated that the society appears to be absconding and non-operational, in complete violation of cooperative principles.
“It has ceased to function as per cooperative norms and, therefore, all options under the Multi-State Cooperative Societies (MSCS) Act, 2002 need to be explored,” the order said.
In his ruling, the Ombudsman directed the society to refund the maturity amounts along with up-to-date interest to all complainants within 15 days of the issuance of the order.
The society has also been ordered to settle any other similar complaints or claims it receives in the future within 15 days of receipt. A compliance report is to be submitted to the Ombudsman’s office as well.
This order sends a strong message across the cooperative sector, especially to defaulting credit societies. It brings a ray of hope to depositors who are struggling to recover their hard-earned savings from non-compliant entities. If the society fails to comply with the directive, further action under the MSCS Act may be initiated.