New Delhi: The Office of the Central Registrar of Cooperative Societies (CRCS) has ordered a detailed inquiry into the affairs of Agri Tourism Multi State Co-operative Society Ltd. (ATCOS), Kerala, before deciding on the society’s request for voluntary winding up.
In an order, Central Registrar of Cooperative Societies Shiv Pal Singh authorised the Institute of Public Auditors of India (IPAI), New Delhi, to examine the society’s constitution, functioning and financial condition. The inquiry will also investigate whether any actions by the society were contrary to the provisions of the Multi-State Cooperative Societies (MSCS) Act, 2002.
The inquiry must be completed within two months, after which IPAI will submit a detailed report to the CRCS for further consideration.
The matter was brought to the Ministry of Cooperation’s attention following complaints from depositors over the non-payment of matured deposits.
In an inspection report dated February 3, 2026, the Kerala Registrar of Cooperative Societies informed the CRCS that ATCOS’s registered office in Kalamassery was closed. The report also referred to complaints against the society lodged at several police stations, including Thrissur, Kalamassery, Thoppumpady and Piravom. Its liabilities towards investors were estimated at approximately ₹70 crore.
The ATCOS Winners Association alleged that the society had collected deposits exceeding ₹50 crore despite restrictions specified in its registration certificate. The association also alleged that funds had been diverted by promoters and directors and stated that 81 criminal cases had been registered in Kerala in connection with the alleged financial fraud.
The association called for an independent inquiry before any liquidation proceedings were initiated.
ATCOS, however, contested the allegations, maintaining that the amounts received were contributions from enrolled voting members rather than public deposits.
The society also claimed that its assets—including land, tourism projects, plantations and agro-industrial ventures—exceeded its liabilities. At the same time, it cited continuing financial losses and uncertainty regarding its ability to continue operations as a going concern.
During a hearing on September 30, 2026, the CRCS questioned why the society could not repay its members if it held sufficient assets to meet its liabilities.
The Registrar observed that a detailed inquiry was necessary to examine the society’s accounts, affairs and the conduct of its office-bearers, as well as to establish the bona fides of its request for voluntary winding up.
The inquiry has been ordered under Section 78(1B) of the MSCS Act, 2002. The CRCS will consider the inquiry report before taking a final decision on the winding-up request under Section 86(6) of the Act.
The outcome of the inquiry is expected to inform the next steps in the matter, particularly in relation to the society’s financial position, the allegations raised by members and depositors, and the merits of its voluntary winding-up request.