Nagpur: Panic gripped investors of Nirmal Ujjwal Co-operative Credit Society after the Nagpur Bench of the Bombay High Court ordered a CBI probe into alleged financial irregularities and misappropriation of investment funds. Following the court’s directive, unrest spread among members, triggering a rush to withdraw deposits. In just seven days, nearly Rs 70 crore has reportedly been withdrawn from the society and its associated Nirmal Urban Co-operative Bank.
Since the announcement of the probe, footfall at various branches of the society has sharply increased as anxious members fear that the institution may collapse financially. Many depositors are rushing to secure their savings, reflecting a deepening crisis of confidence. Despite management assurances, investors remain unconvinced and continue to withdraw funds.
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29 Oct 2025
Management denies panic situation
In an official statement, Nanda Bante, General Manager of Nirmal Ujjwal Society, said that the situation was under control and there was no chaos or unusual crowding. She claimed that only enquiries had increased. However, continuous heavy withdrawals visible on the ground have raised questions over the management’s claims.
Serious allegations triggering the probe
A letter sent to the Central Registrar of Cooperative Societies on June 29, 2023, alleged massive irregularities, illegal transactions, rule violations, and administrative misconduct within the society. The complaint claimed that deposits exceeding Rs 1,400 crore were at risk and suggested the possibility of large-scale fraud, warning that the society could become insolvent at any time. Acting on these allegations, the High Court ordered a CBI investigation.
The High Court expressed strong displeasure with the police for delays in acting on the complaints. Former Police Commissioner Amitesh Kumar had sought permission from the Central Registrar to file an FIR, but on September 19, 2023, the Registrar clarified that no such permission was required. Despite this, the FIR was delayed even after a new commissioner took charge. The court directed that police inaction itself be investigated under the CBI probe.
Cash crunch: Rs 30 crore FD broken
Amidst the mounting withdrawals, the society reportedly broke fixed deposits worth Rs 30 crore to meet cash demands, signalling severe financial pressure. Senior officers have reportedly instructed marketing staff to aggressively mobilize new deposits to stabilize liquidity.
Internal crisis: Employee resignations
The fear of impending CBI scrutiny and financial instability has led to resignations from several employees. The internal atmosphere remains tense despite repeated meetings and assurances from top management claiming financial stability.
Earlier, a Special Investigation Team (SIT) formed by the then Police Commissioner had also flagged major discrepancies and suspected financial fraud. With the matter now handed over to the CBI, more explosive revelations are expected in the coming weeks.
