Depositors protest at Nirmal Ujjwal society office in Nagpur over unpaid deposits

Depositors created a ruckus at the headquarters of Nirmal Ujjwal Credit Co-operative Society Limited in Nandanvan, Nagpur. They say they are not getting back their fixed deposits and other deposited money. Seeing the situation worsen, police had to deploy security personnel outside the office premises and the founder's house.

On October 5, hundreds of distressed depositors gathered outside the main office in Nandanvan and the house of founder secretary Pramod Manmode. Earlier, the society's annual general meeting (AGM) had been held at Anusuya Sabhagruh in Jagnade Chowk, where depositors and management had also had a heated exchange.

Teams from the Nandanvan and Kotwali police stations were deployed to maintain law and order. Kailash Deshmane, senior police inspector at Nandanvan police station, confirmed that the arrangement was made as a precaution. Seeing the heavy police presence, a rumour spread in the area that the Income Tax department had raided the society. Alarmed, more account holders reached the spot. Police later clarified that there had been no income tax raid.

The society has more than 50 branches in Vidarbha, and crores of rupees belonging to ordinary people and small traders are deposited in it. Depositors have several grievances. Their deposits have matured, yet they are not getting their principal or interest. Cheques issued to many account holders bounced, further eroding trust.

At the AGM, Manmode had sought 45 to 60 days to set its finances in order. That period has passed without payments starting. It then emerged that the Central Registrar of Co-operative Societies in Delhi had issued the society a liquidation notice over alleged irregularities of about Rs 51.70 crore. After this, account holders lost their patience.

Depositors allege that less was lent out than the amount deposited with the society, and that their money was put into other businesses without permission. The management, on the other hand, claims the society has substantial assets and that the present problem is only a shortage of liquidity.

The crisis did not arise suddenly. On April 24, 2026, acting on complaints of financial irregularities and misappropriation of funds, the Central Registrar of Co-operative Societies barred the society from accepting new deposits, renewing old fixed deposits and taking fresh investment.

The society challenged the restriction in the Nagpur Bench of the Bombay High Court. A bench of Justice Urmila Joshi-Phalke and Justice Nivedita Mehta dismissed the petition and upheld the restriction. The court found that the society had misled members by presenting interest received on overdue loans as profit. According to the court, loans were given to entities such as PNG Corporation in disregard of the rules, and about Rs 317 crore was diverted without permission into loss-making businesses.

The investigation also found that the society had raised about Rs 1,497 crore from depositors in violation of rules. Following a Supreme Court order, a Special Investigation Team (SIT) and the Economic Offences Wing (EOW) are investigating the case and have also filed a chargesheet. Thousands of depositors across Vidarbha are now waiting for the SIT's final report and government intervention to get their lifetime savings back.