In a major decision reinforcing transparency and accountability in cooperative institutions, the Cooperative Ombudsman Alok Agarwal has directed Deshbhakta Ratnapanna Kumbhar Panchaganga Sahakari Sakhar Karkhana Ltd., Kolhapur, to furnish all information requested by two of its members, Sukumar A. Gadage and Ramesh B. Chougule, within 15 days.
The order follows an appeal filed by the two members on February 2, 2025, under Section 106 of the Multi-State Cooperative Societies (MSCS) Act, 2002.
The appellants had earlier requested a range of information on December 9, 2024, including the list of eligible members for elections (Class A and B), year-wise sugarcane procurement details (2018–2024), audit reports from 2010 to 2024, and data related to concessional sugar received from Shri Renuka Sugars Ltd.
However, the sugar factory refused to provide the information, citing various reasons such as third-party data privacy, the jurisdiction of the Returning Officer, prior disclosure of balance sheets at AGMs, and the fact that the factory is currently leased to Renuka Sugars Ltd. Dissatisfied with the response, the members approached the Cooperative Ombudsman seeking redress.
During the hearing held via video conferencing on April 29, 2025, the Ombudsman questioned the society’s rationale for denying the information. The society later submitted a partial response on April 30, 2025, but continued to withhold several key documents, prompting a fresh appeal by the members on May 29, 2025.
In a detailed order, the Ombudsman observed that the information sought falls well within the scope of Section 106 of the MSCS Act, which mandates cooperatives to provide information to their members. The Ombudsman rejected the society’s reasoning as untenable, stating that members are entitled to receive such information and that the society cannot use technicalities or outsourcing arrangements to avoid disclosure.
Crucially, the Ombudsman clarified that since the factory is a cooperative entity, it remains the principal custodian of its resources and must obtain and share relevant information with its members, even when parts of its operations are leased out.
The Ombudsman has now ordered the respondent society to provide all requested documents within 15 days and submit a compliance report immediately afterward.
This landmark decision is expected to serve as a precedent for cooperative societies across the country and reinforce members’ rights to access information about their institutions.