Taking prompt action, Central Registrar of Cooperative Societies (CRCS) Rabindra Agarwal has initiated the winding-up process of the Maharashtra-based Dnyanradha Multi-State Cooperative Society and issued an order to this effect on Monday.
It is worth recalling that the Enforcement Directorate (ED) previously conducted search operations in Delhi, Jalgaon, and Ahmedabad as part of an investigation into Dnyanradha Multi-State Cooperative Society Ltd. (DMCSL), Suresh Kute, and others, freezing movable assets worth approximately Rs 7.5 crore.
In the order, the CRCS stated, “The Society is not functioning as per the provisions of the MSCS Act, 2002, and its approved bye-laws. Accordingly, it has been decided to initiate the winding-up process under the provisions of the MSCS Act, 2002,” the CRCS said.
The CRCS also mentioned that objections must be submitted within 15 days from the notice’s publication on the office website, crcs.gov.in. Failure to do so would result in the presumption that the Society has no objections, and action for its winding up under the MSCS Act, 2002, and its rules would be initiated.
The order referenced a letter from the Principal Director of Income Tax (Investigation) concerning a complaint against the Society for failing to meet financial obligations under Section 132 of the IT Act.
Additionally, a complaint from MLA Meghna Deepak Sakore Bordikar regarding the Society’s failure to repay depositors was forwarded to the Society for appropriate action as per norms. However, no response was received from the Society, according to the order.
Moreover, an inspection by the Commissioner for Cooperation & Registrar of Cooperative Societies, Maharashtra, revealed negligence and fraudulent activities by the Board of Directors. The Commissioner recommended appointing an Administrator or liquidator as per the MSCS Act, 2002. Despite requests for comments on the inspection report, the Society did not respond, the order added.
The ED investigation revealed that Suresh Kute, in collusion with Dibyayan Das Sharma, fabricated false documents showing a structured investment, allegedly promising funding of Rs 10,000 crore over five years from M/s Minventa Research, Luxembourg, through the securitization of Kute Group’s assets.
Fraudulent documents related to this scheme were also distributed to DMCSL investors to prevent them from pursuing legal action against Suresh Kute and others, with false assurances that all DMCSL investors would be repaid.
It was further revealed that these fabricated documents were also submitted before various judicial bodies, including the Hon’ble High Court and the National Company Law Tribunal (NCLT), in an attempt to mislead authorities and present Kute Group as financially solvent.
Earlier, the ED had conducted search operations in this case on August 9, 2024, freezing movable assets worth Rs. 1.73 crore (approx.) and seizing various incriminating documents and digital devices. The total seizures in this case to date amount to approximately Rs. 9.2 crore.