Ahilyanagar, Maharashtra: The Central Registrar of Cooperative Societies (CRCS) has ordered the winding up of Sai Seva Multi State Co-operative Credit Society Ltd., based in Kashti, Shrigonda taluka, Ahilyanagar district, citing serious financial irregularities, suspected misappropriation of funds and persistent failures in statutory compliance and governance.
The winding-up order was issued under Section 86 of the Multi-State Co-operative Societies Act, 2002. Central Registrar Shiv Pal Singh appointed the Assistant Registrar, Cooperative Societies, Shrigonda, as the Liquidator under Section 89(1) of the Act.
The action follows inspection findings and statutory audit reports for three consecutive financial years—2021–22, 2022–23 and 2023–24. The reports assigned the society the lowest audit classification, ‘D (Bad)’, accompanied by disclaimer opinions.
The audits highlighted substantial related-party lending and financial exposures involving the families of office-bearers and their associated entities. The reported exposures included approximately ₹247.70 crore involving the General Manager’s family and controlled entities, ₹10.58 crore linked to the Chairman’s family, ₹28.89 crore involving Directors and their associates, and ₹20.79 crore involving the Cashier’s family members.
Other reported irregularities included fictitious loan accounts, questionable land development and building advances, proxy borrower loans, round-tripping through a sister concern, accommodation entries and suspected diversion of society funds.
The inspection also identified unsecured loans to Directors and their relatives, violations of borrowing and exposure limits, failure to maintain statutory investments, and non-compliance with requirements relating to audits, employees and membership.
These findings raised concerns about the society’s financial management, internal controls and ability to meet its obligations to depositors and members.
The society had opposed the proposed winding-up proceedings, citing an FIR registered at Shrigonda Police Station and proposing several remedial measures. These included recovery initiatives, fresh elections, concurrent audits and a time-bound revival plan.
However, the CRCS observed that the representations did not establish satisfactory recovery arrangements, adequate repayment capacity towards depositors and members, or a viable mechanism for restoring the society’s financial position.
The Inspection Report was forwarded again in August 2026 for a detailed response. The postal communication was subsequently returned with the endorsement ‘Refused RTS’.
Following the winding-up order, the appointed Liquidator has been directed to take custody of the society’s properties, records, books and other assets and undertake the liquidation process.
The Liquidator has also been instructed to endeavour to complete the proceedings within three months and submit a progress report to the CRCS.
The order marks a significant regulatory step in addressing the society’s reported financial and governance issues. The liquidation process will determine the handling of its assets and liabilities in accordance with the applicable provisions of the Multi-State Co-operative Societies Act, 2002.