The Cooperative Ombudsman Alok Agarwal has directed Swapnavedh Multistate Cooperative Credit Society, Pune, to refund the fixed deposit amount along with interest to Nirgudkar Balchandra Shridhar, a depositor whose cheques were dishonored by the Society.
Shridhar had invested Rs 20,000 and Rs 15,000 in two Fixed Deposits at the Society’s Alandi branch on December 21 and 23, 2022, respectively. He also held a Rs 500 share in the Society.
However, upon requesting premature withdrawal of his deposits in February 2024, the Society issued two cheques amounting to Rs 23,285 and Rs 17,455 on August 9, 2024. Unfortunately, both cheques were dishonored by Kotak Mahindra Bank on September 2, 2024, due to “insufficient funds” and “payment stopped by drawer.”
Despite multiple reminders and a legal notice sent by the complainant on September 29, 2024, the Society failed to respond or refund his money. Left with no alternative, Shridhar approached the Cooperative Ombudsman with a formal complaint on October 27, 2024.
Following this, the Ombudsman issued a notice to Swapnavedh Multistate Cooperative Credit Society Ltd. on December 13, 2024, requesting a response. A subsequent reminder on January 8, 2025, also went unanswered. The reminder was returned undelivered, with the remark “Left” on the envelope, indicating that the Society was unresponsive to the proceedings.
Upon reviewing the facts and available records, the Ombudsman concluded that the Society had no valid defense and was liable to refund the complainant’s deposits. In its final order, the Ombudsman directed the Society to repay Shridhar’s Fixed Deposit amounts, including the accrued interest, within 15 days.
The order also instructed the Society to redeem the complainant’s share certificate per its bylaws and submit a compliance report immediately after making the payment.
The decision marks a crucial victory for depositors and reinforces the importance of regulatory oversight in cooperative credit societies. The case also highlights the significance of investor vigilance while dealing with financial institutions.