It is heartening to note that the institution of Cooperative Ombudsman, as included in the latest amendment to the multistate co-op acts, has begun to deliver. The matter is related to a cooperative society based in Kerala.
In a significant ruling, Alok Agarwal, the Cooperative Ombudsman at the Union Ministry of Cooperation, directed Kerala-based Urban Care Multi-State Agro Cooperative Society Ltd., Kozhikode, to pay the balance due to Smt. Neetu Vijayan against her Fix Deposit along with up-to-date interest, within 10 days from the date of this order.
The society has also been instructed to submit a compliance report to the Ombudsman’s office immediately thereafter.
Smt. Neetu Vijayan, represented by Subheesh Kumar, had lodged a complaint on August 26, 2024, stating that she had invested Rs. 12 lakh in a fixed deposit with the society on May 13, 2024, for six months at 9% interest per annum. She reportedly requested premature withdrawal of the FD on June 13, 2024, due to personal urgency, but the society allegedly failed to process her request or respond to her.
Initially, the society acknowledged the FD in its response dated October 9, 2024, promising repayment upon maturity on November 13, 2024. However, during a hearing on November 7, 2024, the society’s CEO, Shri V. Manoharan, backtracked, denying the FD’s existence and attributing discrepancies to the tenure of a former CEO.
The order copy noted that evidence presented by Smt. Vijayan, including extracts from the society’s manual cash book and transaction records, confirmed that an emergency cash advance of Rs. 50,000 had been disbursed to her on June 24, 2024, against the disputed FD.
The Ombudsman highlighted glaring inconsistencies in the society’s statements and emphasized that depositors rely on the receipts issued to them and should not be held accountable for internal mismanagement within the society.
In its final order, the Ombudsman instructed the Urban Care Multi-State Agro Cooperative Society Ltd. to pay the remaining balance along with accrued interest to Smt. Neetu Vijayan within ten days. The society was also required to promptly submit a compliance report.
This decision underscores the importance of accountability and adherence to financial commitments by cooperative societies.
