The Ministry of Corporate Affairs confirmed that 115 multi-state cooperative societies are undergoing liquidation. Depositors will receive funds only after assets are sold and debts are cleared, with no plans for fast-track courts to speed up the process.
The Ministry of Corporate Affairs has officially stated that 115 multi-state cooperative societies are currently in the process of liquidation. Harsh Malhotra, Minister of State for Corporate Affairs, explained in the Lok Sabha that the refund process for depositors is tied to the legal liquidation timeline. Under the Multi-State Cooperative Societies Act, 2002, money can only be returned after the liquidator completes the sale of the society’s assets and clears all outstanding liabilities.
No Fast-Track Courts Planned
Investors seeking quicker access to their stuck funds should note that the government has ruled out the creation of special or fast-track courts for these cases. The official stance is that the existing legal framework under the 2002 Act must be followed. This means the pace of refunds will depend on how quickly liquidators can identify, value, and sell off the properties or financial assets held by these 115 societies. As asset sales in legal disputes can often be time-consuming, this process may remain a long-term monitorable for affected depositors.
Sahara Group Refund Status
Regarding the high-profile Sahara case, official data shows that significant progress has been made under Supreme Court supervision. Following the 2023 directive, Rs 10,000 crore was transferred to the Central Registrar of Cooperative Societies for disbursement. As of July 28, 2026, the government reported that Rs 9,265 crore has been distributed to 41.5 lakh eligible depositors. This follows a long-standing legal battle originating from a 2012 Supreme Court order involving optional fully convertible debentures. Investors may continue to track updates from the Central Registrar of Cooperative Societies regarding any remaining unclaimed amounts or future phases of the disbursement process.
The key concern for those involved with other distressed cooperative societies is the lack of a simplified or accelerated legal path. The current regulatory environment emphasizes the orderly settlement of claims based on realized assets rather than immediate liquidity, which underscores the risk of capital loss or extended wait times for those with deposits in societies facing financial insolvency.