In a major regulatory action, the Central Registrar of Cooperative Societies has barred Nirmal Ujjwal Credit Cooperative Society Limited from accepting fresh deposits or renewing existing ones over alleged financial irregularities and regulatory violations.
The registrar cited “serious financial impropriety, diversion of funds, conflict of interest, and regulatory non-compliance” that surfaced during an ongoing police investigation. The Nagpur-based society has been directed to immediately stop all deposit mobilisation activities until further orders.
The society has also been instructed to inform all members and depositors about the restrictions and prominently display the order at its offices, branches and on its website. The registrar observed that allowing the society to continue accepting deposits “would expose interests of members/depositors to a big financial risk and may further aggravate the situation”.
The order was issued on April 24 after an online hearing attended by the society’s vice-president Vitthalrao Gawande and CEO Nanda Bante. The action follows findings by a Special Investigation Team (SIT), which reportedly indicated prima facie involvement of certain office-bearers in alleged fund misappropriation.
According to the registrar’s order, loans were sanctioned in the names of staff members and later transferred to an entity identified as PNG Corporation. Loans were also allegedly granted to persons linked to the same entity, with funds eventually routed back to it. A significant portion of loans disbursed between 2020 and 2025 reportedly remains unpaid, while a large loan granted to the then secretary saw inadequate recovery efforts.
The registrar also pointed out that the society failed to submit complete annual returns as required under Section 120 of the Multi-State Co-operative Societies Act, 2002.
Though the society denied the allegations in its written reply dated April 14, the registrar noted that it failed to provide “cogent or verifiable documentary evidence” in support of its claims. During the hearing, representatives admitted that PNG Corporation and Nirmal Food Product were made members and granted loans, a move found to be against statutory provisions.
The order further stated that recovery proceedings appeared to have started only after notices were issued and the SIT probe began, raising concerns over governance lapses. It also noted that the matter remains under active investigation and referred to the March 24 observations of the Nagpur Bench of the Bombay High Court regarding the prima facie involvement of certain office-bearers.
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