The Office of the Central Registrar of Cooperative Societies (CRCS) has issued a notice initiating winding-up proceedings against the Steel Authority of India Employees’ Cooperative Credit Society Ltd., Kolkata, citing extensive financial irregularities, statutory violations, and failure to comply with multiple orders.
According to the notice dated 28 November 2025, the Society, registered under the MSCS Act, 2002, has been under scrutiny following numerous complaints by members regarding non-payment of matured deposits and alleged mismanagement.
An inspection conducted by the Registrar of Cooperative Societies, West Bengal, under Section 108 of the MSCS Act revealed illegal membership admissions, risky and unauthorized investments, suspicious banking practices, and election-related irregularities. Despite repeated communications, the Society failed to respond.
The Cooperative Ombudsman had earlier directed the Society on 17 February 2025 to repay matured deposits with interest. Subsequent orders from CRCS on 14 August 2025 and 11 September 2025 directing the newly elected Board to settle dues and take corrective action were also ignored.
A detailed inquiry by the Institute of Public Auditors of India (IPAI) exposed serious financial mismanagement, including unauthorized schemes, speculative investments, diversion of funds to an illegally constituted hospital trust, and prolonged dominance of the former chairman. Fraudulent accounting practices, manipulation of income, and violations of cooperative principles were also flagged.
Further, a forensic audit ordered by the Delhi High Court for FY 2020–21 to 2024–25 found massive irregularities, including unverifiable deposits of Rs 320.89 crore, irregular loans of Rs 36.51 crore to an ineligible foundation, manipulated asset valuations, loss-making property transactions, and a net deficit of Rs (-)3,64,84,03,714. Numerous statutory violations, including non-filing of mandatory returns and sanctioning loans beyond permissible limits, were also reported.
Citing these findings, the Central Registrar has concluded that the Society is no longer functioning in accordance with the MSCS Act or cooperative principles. The CRCS has invited objections within 15 days of the notice being uploaded on crcs.gov.in, failing which winding-up proceedings will formally commence.