Summary: The Bombay High Court has allowed an investigation to continue into alleged financial wrongdoing at Shivkrupa Sahakari Patpedhi Limited, reversing a previous decision to stop it.
Shivkrupa Sahakari Patpedhi Limited, a credit cooperative society in Mumbai, was accused of financial misbehavior by its former leaders. Problems were found during audits for the financial years 2022-2023 and 2023-2024.
On September 12, 2024, the Additional Registrar ordered an investigation based on a Special Report by the official auditor, R. R. Pingale. The report pointed out possible financial losses caused by unauthorized actions of the society’s former leaders.
The former leaders opposed the investigation, and on December 17, 2025, the review authority canceled both the investigation order and the auditor's report. They claimed the report relied on old findings without checking them independently and argued the investigation was not legally valid.
Judge Amit Borkar, on February 24, 2026, canceled the review authority's decision. The court stressed that the audit report was just a starting point, not a final decision affecting anyone's rights or responsibilities, and therefore couldn't be changed under Section 154.
"The Special Report dated 14 August 2024 is not an order or decision within the meaning of Section 154," said Judge Borkar.
The court has ordered the investigation to continue as originally planned on September 12, 2024. The investigation will find out if the former leaders are responsible for any financial losses.
The court's decision allows the investigation to proceed, ensuring that the truth about the financial transactions is uncovered and accountability is maintained within cooperative societies.
