The Central Registrar of Cooperative Societies (CRCS), Rabindra Agarwal has initiated the winding-up process for two Multi-State Cooperative Credit Societies in Beed—Rajasthani Multi State Cooperative Credit Society Ltd. and Jijav Ma Saheb Multi State Cooperative Credit Society Ltd.—due to severe financial irregularities and non-compliance with the Multi-State Cooperative Societies (MSCS) Act, 2002.
Rajasthani Multi State Cooperative Credit Society Ltd., registered under the MSCS Act, 2002, failed to meet its obligations towards depositors. The Reserve Bank of India (RBI) had earlier flagged concerns regarding non-payment of deposits.
A letter addressed to the Society regarding these complaints was returned undelivered, marked as ‘closed.’ Moreover, the Society failed to file its mandatory annual returns for the financial year 2022-23.
An inspection by the Commissioner for Cooperation and Registrar of Cooperative Societies, Government of Maharashtra, revealed that the Society’s head office had been sealed by the police, while its Board of Directors displayed gross negligence in refunding depositors’ money. Authorities recommended appointing an administrator or liquidator to handle the Society’s affairs.
Similarly, Jijav Ma Saheb Multi State Cooperative Credit Society Ltd. was found guilty of misappropriating Rs 160 crores in deposits. Reports indicate that the Society’s Chairperson and other key officials had absconded.
The Society had violated multiple provisions of the MSCS Act, 2002, including Section 67, as noted in its audit report for the financial year 2021-22. Multiple notices sent to the Society were returned undelivered, indicating its operations had been abandoned.
An inspection by the Maharashtra Registrar of Cooperative Societies confirmed that financial records were seized by the police and funds were misappropriated. Although authorities considered appointing an administrator, legal conditions for such an appointment were not met.
Given the gravity of these findings, authorities have decided to proceed with the winding-up process under the MSCS Act, 2002. Any objections must be submitted within 15 days of the notice being uploaded on the official website (crcs.gov.in).
If no objections are received, the formal liquidation process will commence, aiming to safeguard depositors and uphold the integrity of the cooperative banking system.
