- In a noteworthy turn of events, Cooperative Ombudsman Alok Agarwal has taken a firm stand against the Shree Sarneshwar Credit Cooperative Society based in Gujarat, ordering it to refund the matured recurring deposit amounts to over twenty frustrated depositors.
- These individuals sought the Ombudsman’s help after the society failed to return their funds when they were due.
- Among the complainants are Ganesh Vishwakarma, Bamba Bahadur Sike, Devi Rokaya, Hema Sikke, Haresh Bahadur Bhandari, Shikha Agarwal, Shailender Kumar Bhushan, Uday Prasad Bind, and others.
- They had opened recurring deposit accounts under the RI-3 plan with the society between November 2021 and February 2022, contributing monthly amounts ranging from Rs 1,000 to Rs 6,400.
- However, when the deposit period ended in early 2024, the society did not release the maturity proceeds.
In a noteworthy turn of events, Cooperative Ombudsman Alok Agarwal has taken a firm stand against the Shree Sarneshwar Credit Cooperative Society based in Gujarat, ordering it to refund the matured recurring deposit amounts to over twenty frustrated depositors.
These individuals sought the Ombudsman’s help after the society failed to return their funds when they were due.
Among the complainants are Ganesh Vishwakarma, Bamba Bahadur Sike, Devi Rokaya, Hema Sikke, Haresh Bahadur Bhandari, Shikha Agarwal, Shailender Kumar Bhushan, Uday Prasad Bind, and others. They had opened recurring deposit accounts under the RI-3 plan with the society between November 2021 and February 2022, contributing monthly amounts ranging from Rs 1,000 to Rs 6,400. However, when the deposit period ended in early 2024, the society did not release the maturity proceeds.
In his order, Ombudsman Alok Agarwal pointed out that despite numerous requests, the society neither refunded the maturity amounts nor responded to the complainants. Additionally, notices and reminders sent by the Ombudsman’s office to the society’s locations in Valsad (Gujarat) and Sirohi (Rajasthan) were returned as undeliverable, marked with comments like “Addressee Left” and “Left RTS.”
The Ombudsman noted that complaints from society members about the non-refund of deposits keep pouring in. He remarked that the society seems to be evading responsibility and is not operational, which goes against cooperative principles.
“It has stopped functioning according to cooperative norms, and thus, all options under the Multi-State Cooperative Societies (MSCS) Act, 2002 should be considered,” the order stated.
In his ruling, the Ombudsman instructed the society to refund the maturity amounts along with the accrued interest to all complainants within 15 days of the order’s issuance.
The society has been instructed to address any similar complaints or claims it receives in the future within 15 days of getting them. Additionally, a compliance report needs to be submitted to the Ombudsman’s office.
This directive sends a powerful message throughout the cooperative sector, particularly to credit societies that are falling short. It offers a glimmer of hope to depositors who are having a tough time getting back their hard-earned savings from those non-compliant organizations. If the society doesn’t follow through with this order, further action could be taken under the MSCS Act.