FEDERAL CRACKDOWN ON MULTI-STATE SOCIETIES

THIRUVANANTHAPURAM — In an escalating cross-border regulatory crackdown, the Central Office of the Cooperative Ombudsman has initiated severe punitive proceedings against several defiant Multi-State Cooperative Societies (MSCS) operating across Kerala. The federal intervention, executed under the aegis of the Union Ministry of Cooperation, marks a sharp tightening of oversight on cross-border cooperative entities accused of violating transparent banking norms.At the center of the clampdown is a formal decree issued against the BK Dhanalakshmi Multi-State Agricultural Cooperative Society Ltd., which operates its headquarters out of Thrissur. The federal order follows a massive cascade of investor complaints filed by depositors regarding the non-refund and systematic, illegal withholding of matured Fixed Deposit Receipts (FDRs). According to ministry sources, the central authority took a grim view of the institution's conduct after it repeatedly ignored and failed to cooperate with statutory notices issued during the preliminary investigation.Accusing the management of actively abandoning transparent cooperative principles, the Central Ombudsman has slapped the society with a strict 30-day ultimatum to clear all overdue principal amounts along with up-to-date interest liabilities. Federal officials have noted that failure to comply with this final window will trigger immediate, severe structural interventions, including potential asset freezes, management suspension, and a wider investigation into systemic financial mismanagement within the multi-state agricultural sector.