Amid allegations and non-compliance, the Central Registrar of Cooperative Societies, Rabindra Kumar Agarwal, has ordered the winding up of the Loni Urban Multi-State Credit and Thrift Cooperative Society Ltd., headquartered in Vaishali, Ghaziabad, Uttar Pradesh.
The order, issued under Section 86 of the Multi-State Cooperative Societies (MSCS) Act, 2002, cites serious allegations, financial irregularities, and non-compliance with statutory regulations.
The action follows multiple complaints regarding unauthorized operations in Uttarakhand and non-repayment of matured deposits. The Registrar of Cooperative Societies, Uttarakhand, flagged concerns over the Society’s illegal expansion without Central Registrar approval. The Reserve Bank of India (RBI) also forwarded complaints of non-repayment, prompting further scrutiny.
The Society’s audit report for FY 2021-22 highlighted serious financial discrepancies. A Show Cause Notice was issued on August 31, 2023, followed by a reminder on September 21, 2023. The Society denied all allegations in its September 19, 2023 response, which was deemed contradictory, leading to further investigations.
An inspection ordered by the Registrar of Cooperative Societies, Uttar Pradesh, in April 2024 found that the Society was not operating from its registered address. Further inspections in September 2024 were obstructed due to the Society’s failure to provide essential financial and membership records.
The Society also failed to submit mandatory annual returns for FY 2023-24 under Section 120 of the MSCS Act, 2002, despite repeated notices. After issuing a final notice on January 27, 2025, and receiving no response, the Central Registrar proceeded with the winding-up process.
Under Section 89(1) of the MSCS Act, 2002, the Deputy Commissioner & Deputy Registrar/Joint Commissioner & Joint Registrar, Cooperation, Meerut Division, has been appointed as the liquidator. The liquidator must oversee the dissolution process and submit quarterly progress reports to the Central Registrar.
The winding-up order raises concerns for depositors, many of whom have filed complaints regarding non-repayment. The liquidator will assess assets and liabilities and initiate proceedings to settle outstanding claims per legal provisions.
Authorities urge affected depositors to stay informed about the liquidation process and contact relevant officials for claim settlements. This step reinforces efforts to regulate multi-state cooperative societies and uphold financial accountability.
How many days it will take? Because there is no earning source of income in my family. My maturity date was 2nd Feb 2024 and still my family doesn’t receive the pending amount we are struggling a lot. Kindly help us and resolve this issue asap. There were noone to contact for the concern for the same.