In a significant move to uphold depositor rights, the Cooperative Ombudsman has directed Mohali-based Wishvaas Credit Cooperative Society to refund the maturity proceeds of recurring deposits to its complainants within 15 days, along with up-to-date interest. This directive follows multiple complaints lodged by depositors regarding non-payment of their matured deposits.
The complainants, including Smt. Priyanka, Deepak Thakur, Joginder Singh, and Mamta, had invested in 12-month tenure recurring deposits with the society. Upon maturity, their requests for refunds were met with silence, prompting them to escalate the matter to the Cooperative Ombudsman.
Notices issued on February 13 and 18, 2025, seeking a response from the society, were returned undelivered, raising concerns about the society’s credibility. No replies were received from the society against any of the notices issued by the Ombudsman’s office.
The Cooperative Ombudsman, established under Section 85A of the Multi-State Cooperative Societies (MSCS) Act, 2002, plays a pivotal role in safeguarding the interests of members of multi-state cooperative societies.
Appointed by the Central Government, the Ombudsman addresses complaints related to non-payment of deposits, financial mismanagement, denial of services, and violations of democratic rights within these societies .
In this case, after reviewing the complaints and noting the society’s non-responsiveness, the Ombudsman found that the society had multiple complaints against it for failing to return depositors’ money.
Consequently, the society has been ordered to refund all outstanding deposits along with interest within 15 days. Additionally, it must settle any pending and future claims from depositors within 15 days of receiving them and submit a compliance report after making the refunds.
This decision underscores the Ombudsman’s authority to enforce accountability and ensure financial discipline within cooperative societies. By providing a robust grievance redressal mechanism, the Ombudsman reinforces the cooperative model as a pillar of inclusive and sustainable development .
The directive serves as a relief for the affected depositors and highlights the increasing scrutiny on cooperative credit societies regarding financial transparency and depositor protection. It also emphasizes the importance of the Ombudsman’s role in maintaining the integrity of the cooperative sector.
As the cooperative movement in India continues to evolve, the establishment of the Cooperative Ombudsman marks a significant step towards strengthening transparency, accountability, and member protection within the sector. The ball is now in Wishvaas Credit Cooperative Society’s court to comply with the Ombudsman’s directives and restore faith among its members.