Depositors crowd Nirmal Ujjwal society's Nandanvan office in Nagpur demanding refunds

Nagpur: Tension prevailed on Monday at the Nandanvan headquarters of Nirmal Ujjwal Credit Co-operative Society Limited, as a large number of depositors and account holders arrived at the office demanding their money back. Depositors, angry that they had not been paid even after their deposits matured, created a commotion on the premises. As the crowd grew, police were deployed from the Nandanvan and Kotwali police stations to maintain law and order.

On Monday morning, police were seen outside the society's main office and outside the cabin of founder secretary Pramod Manmode. As news of the police deployment spread, a rumour went round that the Income Tax department had raided the society. Worried about their money, more account holders then began arriving at the office.

It was later clarified that no Income Tax raid had taken place at the society's office. The police deployment was a precaution, as a large number of depositors were expected to gather and a dispute was likely.

Depositors have been complaining for several months that they are not getting their money even after maturity. Some depositors have also claimed that their cheques bounced.

Meanwhile, it has emerged that the Central Registrar of Cooperative Societies in Delhi has issued a liquidation notice over alleged irregularities of Rs 51.70 crore in the society. This has deepened depositors' concern. They have demanded that the government and the cooperation department intervene urgently and get their money back.

It is said that ordinary citizens and traders have large sums deposited across the society's more than 50 branches. Discontent among account holders is growing as the situation over payments has remained unchanged for a long time.

At the society's recent annual general meeting, founder secretary Pramod Manmode had sought 45 to 60 days to set things right. Depositors say that this period has passed without payments beginning, adding to their distress.

Depositors allege that the society's lending is low compared with the deposits it holds and that its money has been invested elsewhere. The society's management, on the other hand, claims it has sufficient assets and that depositors' money is safe. According to the management, the present difficulty relates to a shortage of liquidity, and efforts are on to set matters right.

Following the tension caused by the large turnout of depositors at the headquarters on Monday, police maintained their deployment at the spot and kept watch on the situation.