The Central Registrar of Cooperative Societies (CRCS), Shiv Pal Singh, has proposed initiating winding-up proceedings against Maharashtra’s Nagpur-based Nirmal Ujjwal Credit Cooperative Society Ltd., citing concerns related to its financial management, lending practices, regulatory compliance and the interests of members and depositors.
In a notice issued under Section 86 of the Multi-State Cooperative Societies Act, 2002, the CRCS referred to judicial proceedings, investigations by the SIT/Economic Offences Wing (EOW), complaints from members and depositors, and the Society’s reported non-cooperation with a forensic audit.
The notice refers to an EOW, Nagpur, charge-sheet filed against 11 office bearers/accused persons in connection with FIR No. 413/2025. According to the notice, the charge-sheet contains allegations of criminal conspiracy, cheating, criminal breach of trust, irregular loan approvals and transfer of funds to related entities, involving alleged misappropriation of around Rs 51.70 crore.
The CRCS further noted that restrictions were imposed on the Society on 24 April 2026, prohibiting it from accepting fresh deposits, contributions or investments from members and from renewing existing deposits. The notice also records complaints concerning non-payment of matured fixed deposits, savings balances and other deposits.
The Central Registrar said the forensic auditor had repeatedly sought financial records and information for the relevant financial years, but the required documents had not been fully furnished, affecting the progress of the audit.
Meanwhile, the Annual Report for FY 2025-26, available on the Society’s website, presents a different picture of its reported financial position. It states that the Society had 1,69,010 shareholders, deposits of Rs 1,612.82 crore, and loans and investments of Rs 496.03 crore as of 31 March 2026. Reserves and other funds stood at Rs 215.27 crore, while paid-up capital and nominal member capital were reported at Rs 31.41 crore.
The report states that the Society operated 65 fully computerized branches across Maharashtra, Madhya Pradesh and Chhattisgarh and had 718 small savings agents. It reported a current-year surplus of Rs 4.65 crore, taking the total profit figure, including the previous year’s profit, to Rs 4.91 crore.
The Society’s reported figures are separate from the allegations and observations contained in the CRCS notice.
Importantly, the notice is not a final winding-up order. The Society or any person having an objection has been given 15 days from the date of uploading of the notice on the CRCS website to submit objections. Further action will be taken thereafter in accordance with the MSCS Act and Rules.
