The Central Registrar of Cooperative Societies (CRCS) has initiated proceedings to wind up Nirmal Ujjwal Credit Cooperative Society Limited, Nagpur, over alleged financial irregularities involving around Rs 51.70 crore. The authority has cited alleged diversion of funds, irregular lending, non-payment of matured deposits and failure to cooperate with a forensic audit. In a notice dated September 25, 2026, the Office of the Central Registrar, Ministry of Cooperation, Government of India, has given the society and other concerned persons 15 days to submit their objections. The period will be counted from the date the notice is uploaded on the official website, crcs.gov.in. The authority has warned that it will proceed under the Multi-State Cooperative Societies (MSCS) Act, 2002, if no objections are received within the stipulated period. The society has not yet been wound up. The latest notice is a proposal to initiate the winding up process. The action follows complaints, police communications, court proceedings and investigations by the Special Investigation Team (SIT) and the Economic Offences Wing (EOW). Rs 51.70 crore alleged fraud The notice refers to a chargesheet filed by the EOW, Nagpur, against 11 office-bearers and other accused persons of the society. The chargesheet, numbered 51/2026, was filed before the Court of Judicial Magistrate First Class, Court No. 8, Nagpur, in connection with FIR No. 413/2025. According to the Central Registrar, the alleged misappropriation is estimated at around Rs 51.70 crore.

 

The notice refers to alleged irregular loans sanctioned to several entities, including PNG Corporation, Nirmal Food Products, Future Fuels, Nirmal Dairy and Nirmal Textiles. Substantial amounts reportedly remain outstanding. These allegations are yet to be established during the criminal trial. HC intervention The society has faced allegations of financial irregularities for several years. In 2019, Criminal Writ Petition No. 1068/2019 was filed before the Bombay High Court, Nagpur Bench. The Central Registrar and the Secretary of the Department of Agriculture and Cooperation were made respondents in the case. The Central Registrar’s office filed an affidavit before the High Court in April 2022. The Nagpur Police Commissioner also sent a communication to the Central Registrar on June 29, 2023. It alleged continuing financial irregularities, acceptance of deposits from non-members, collection of amounts beyond permissible limits and diversion of funds without the required approval. Following these allegations, the Central Registrar issued a show-cause notice to the society on September 13, 2023. A hearing was held on September 29, 2023. The Maharashtra Cooperation Commissioner was also asked to inspect the society's affairs. An inspection report was received on December 27, 2023. Another show-cause notice followed on January 30, 2024. The society submitted its reply on February 10, 2024. After examining the reply and available records, the authority did not consider further action necessary at that stage. However, the matter returned to the courts amid fresh allegations and demands for investigation.

 

On November 20, 2025, the Bombay High Court, Nagpur Bench, took cognisance of serious allegations, including misuse and diversion of funds. It directed an investigation by an appropriate agency. The society challenged the order before the Supreme Court. On December 1, 2025, the Supreme Court modified the directions and ordered the constitution of an SIT by the Maharashtra Director General of Police under the supervision of the High Court. Deposits barred On April 24, 2026, the Central Registrar prohibited the society from accepting fresh deposits, contributions or investments from members. It was also barred from renewing existing deposits until further orders. The restrictions followed observations made by the High Court on March 24, 2026, regarding the investigation and the alleged involvement of certain office-bearers. The Central Registrar had issued a notice to the society on April 8, seeking its response. During the April 24 hearing, serious irregularities concerning loans to employees of PNG Corporation and Nirmal Food Products were brought on record. The Central Registrar observed that allowing the society to continue collecting deposits without restrictions could expose members and depositors to significant financial risk. The society challenged the order before the Bombay High Court.

 

However, the High Court rejected its plea for an interim stay on May 8, 2026. The society also approached the appellate authority under Section 99(1) of the MSCS Act. The appeal was heard on June 2. The authority concluded that the April 24 order was not appealable under the provision invoked. It directed the Central Registrar to examine the society’s submissions and take appropriate action. After examining the submissions, the Central Registrar found no grounds to suspend the restrictions. Audit records missing The alleged failure to provide documents for a forensic audit has emerged as another major concern. On May 11, 2026, the Central Registrar ordered a forensic audit covering the society's preceding five financial years. The audit was assigned to R. Devendra Kumar & Associates, Chartered Accountants, Mumbai. However, the auditor reportedly informed the authority that the society had not provided the required financial records despite repeated requests. On June 9, the society was directed to submit all documents within three days and extend full cooperation. The auditor informed the Central Registrar on June 16 that the records had still not been received. A meeting was held on August 27 to review the audit’s progress.

 

The society was directed to visit the auditor's office on August 31 and provide the necessary information. However, in an email dated September 21, the auditor informed the Central Registrar that important records were still awaited. These included details of assets and liabilities for 2024-25 and data for 2020-21 to 2023-24. Depositors await dues The notice also refers to complaints from members and depositors who have allegedly not received their matured fixed deposits, savings bank balances and other deposits. The Central Registrar said depositors had repeatedly sought repayment but had not received their dues. The society was directed to take immediate steps to repay matured deposits and submit a progress report. The notice also raises concerns over alleged acceptance of deposits beyond the limits prescribed under Section 67 of the MSCS Act, investments from non-members, violations of investment provisions under Section 64, alleged inflation of revenue under Section 62, irregular lending and deficiencies in statutory returns.