Central Registrar orders winding up of Arth Credit Co-op

The Central Registrar of Cooperative Societies has issued a notice to the Rajasthan-based Arth Credit Cooperative Society Limited to wind up their operations. The society members were found to be absconding and not functioning from their registered office.

It bears recall that after the Adarsh Credit Co-op Society, the Arth Credit Co-operative Society grabbed the media headlines in 2019 for allegedly swindling members to the tune of Rs 80 crore.

It is a multi-state cooperative society, having operations in Uttar Pradesh, Rajasthan, Madhya Pradesh, Gujarat and other states.

The Circular released with the signature of Vijay Kumar, Central Registrar of Cooperative Society read, “Arth Credit Cooperative Society Ltd., Plot No.43, Opposite Asapura Mandir, Chopasni Road, Jodhpur, Rajasthan (MSCS/CR/520/2012) is registered under the provisions of Multi-State Cooperative Society (MSCS) Act, 2002 and Rules made thereunder”.

It further reads, “In December, 2020, a matter of inclusion of the name of Shri Prakash Purohit in the Board of the Arth Credit Cooperative Society Ltd., Jodhpur, Rajasthan through fake means was brought to the notice of this office with a request to inquire into the matter. A show cause notice dated 30.04.2021, was issued to the society for clarification. But the same returned undelivered to this office with the remarks “left without address”.

“Thereafter, another Show Cause Notice dated 02.12.2021 was sent to Promoters of the society. One of the promoters Mohammad Akhlakh vide letter dated 28.12.2021 intimated this office that he has resigned from the society in 2012 and attached a copy of resignation letter. Some of the envelopes returned undelivered and no reply was received from the remaining members “, the Central Registrar’s letter reads.

It further stated that, “Therefore, it appears that the society is absconding and is not functioning at its registered address. Therefore, it has been decided to initiate winding up of the society under the provisions of MSCS Act, 2002 and Rules made thereunder.”

The notice further reads “Any objections to the same may be brought to the notice of the Central Registrar within 15 days from the date of this notice uploaded in the office website i.e. www.mscs.dac.gov.in failing which action would be initiated to wind up of the society as per the provisions of MSCS Act and rules made thereunder”.

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