A financial fraud has come to light. The Human Welfare Credit and Thrift Cooperative Society, based in Delhi, disappeared after allegedly duping thousands of investors from eight districts of Himachal Pradesh. The cooperative society reportedly collected nearly Rs 500 crore from unsuspecting individuals over the past nine years, promising high returns on fixed deposits ranging from 9 to 14 percent.
The society had expanded its reach by opening 37 branches across Himachal Pradesh. However, after multiple complaints of fraud, the Central Registrar Cooperative Society issued several notices to the organization, which went unanswered. With the closure of its main office in Delhi now confirmed, the authorities have initiated the liquidation process to settle investor liabilities using the society’s remaining assets.
Investors Trapped by High Returns
The fraudulent scheme lured people from various walks of life, including government officials, pensioners, businessmen, employees, and housewives. The Human Welfare Credit and Thrift Cooperative Society had received a No Objection Certificate (NOC) from the State Cooperative Society on March 30, 2016, enabling it to operate in Himachal.
Despite the revelation of the scam, branches under the name ‘Suvidha Kendra’ are still functioning in several districts, including Shimla, Solan, Una, Sirmaur, Bilaspur, Mandi, Kangra, and Hamirpur. Each branch was managed by a designated manager, with hundreds of local agents working on commission. Investors, trusting these local agents, continued to pour in their money, unaware of the looming crisis. Reports suggest that the highest number of investors belong to Shimla and Una.
Fraud Complaints and Legal Action
Some victims have lodged complaints at the State Registrar Cooperative Society office in Kasumpti. Meanwhile, the State Cooperative Societies have confirmed that the liquidation process has commenced, and complaints are being forwarded to the Central Registrar Cooperative Societies for further action.
The fraudulent activities came under scrutiny when the society’s website and online portal abruptly shut down on December 2, 2024, sparking panic among investors. Initially, depositors were assured that the issue was due to a technical glitch and that their funds were secure. However, as the reality unfolded, a fraud case of Rs 3.33 crore was filed by an agent at the Chhota Shimla police station. As of now, the police have not made any significant progress in the investigation.
Interstate Fraud and Investigation Challenges
Since the cooperative society operated across multiple states, the jurisdiction to investigate, audit, and inspect its activities lies with the Central Registrar Cooperative Societies in Delhi. Authorities are now working on tracing the assets and funds to ensure investors get their money back.
The revelation of such a large-scale fraud raises serious concerns about the regulatory framework governing cooperative societies. As the investigation unfolds, affected investors continue to demand stringent action against those responsible for orchestrating the scam.
