Central Registrar bars Nirmal Coop Society from accepting deposits

Nagpur: The Central Registrar of Cooperative Societies, in a big regulatory action, has barred Nirmal Ujjwal Credit Cooperative Society Limited from accepting fresh deposits or renewing existing ones, citing "serious financial impropriety, diversion of funds, conflict of interest, and regulatory non-compliance" emerging from the ongoing police investigation.

The society has now been directed to inform all members and depositors about the restrictions and prominently display the order on its website and at all offices and branches.

Citing risks to depositors, the authority concluded that allowing the society to continue accepting funds "would expose interests of members/depositors to a big financial risk and may further aggravate the situation".

The order, issued on April 24 following a hearing, directs the Nagpur-based society to immediately halt all deposit mobilisation activities until further notice. The online hearing was attended by the society vice-president Vitthalrao Gawande and chief executive officer Nanda Bante, as mentioned in the registrar's order. The decision comes after findings by a Special Investigation Team (SIT) pointed to prima facie involvement of certain office-bearers in alleged misappropriation of funds.

According to the Central Registrar of Cooperative Societies order, loans were "sanctioned in names of staff and thereafter transferred" to an entity identified as PNG Corporation. It further noted loans were extended to individuals linked to the same entity, with funds routed back to it. Large portions of loans disbursed between 2020 and 2025 remain unpaid, while a "loan of big magnitude" was granted to then secretary with inadequate recovery action.

The registrar also flagged the society's failure to submit complete annual returns as mandated under Section 120 of Multi-State Co-operative Societies Act, 2002.

Despite denying allegations in its written response dated April 14, the society "furnished no cogent or verifiable documentary evidence" to support its claims. During the hearing, representatives admitted PNG Corporation and Nirmal Food Product were made members and granted loans — a move found to be in violation of statutory provisions.

The order noted that recovery proceedings appeared to have begun only after issuance of notice and initiation of the SIT probe, raising further concerns about governance lapses. "The matter is still under active investigation," the registrar observed, adding Nagpur bench of Bombay High Court, in its March 24 order, took note of the prima facie involvement of certain office-bearers.


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