Cooperative group loan dispute

Question

Cooperative group loan dispute

03-Feb-2026 (In Recovery Law)

In 2015, our group of 15 ladies took a loan from a cooperative society. We paid all EMIs on time until demonetization in 2016, when 2-3 EMIs remained. We verbally requested them adjust our savings/deposits against the remaining ~₹2-3K principal to close the loan; they agreed verbally but didn't adjust. No payments reminder or notices for 6 years. From 2023, they started sending recovery notices claiming ₹40-50K balance with interest. We've offered to pay the actual principal but they refuse.

Answers (4)

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Advocate Prashant Gupta LawRato · Accepted Answer · 2026-02-03T18:48:12+05:30

Answer #2

Collect Documents Loan agreement Group resolution / undertaking EMI receipts / bank statements Any notices or messages from the society 2️⃣ Write a Complaint Submit a written complaint to: Co-operative Society Office Bank Branch Manager Ask for: Correct loan statement Responsibility breakup of each member 3️⃣ Approach Co-operative Authorities If harassment or unfair recovery continues: Deputy Registrar of Co-operative Societies District Co-operative Officer 4️⃣ Legal Notice (If Needed) Send a legal notice through an advocate for: Illegal recovery Harassment

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Advocate Mahrukh Khan LawRato · Accepted Answer · 2026-02-04T21:06:37+05:30

Answer #3

One or more members ran away / not paying Society demanding full amount from one person Illegal recovery pressure or threats Account showing wrong outstanding / lien Loan taken without proper consent/signature Your legal rights (very important) ⚖️ 1. Society cannot harass you No threats, no public humiliation No visits at odd hours No pressure on family members

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Advocate Pankaj Bajaj LawRato · Accepted Answer · 2026-02-20T23:43:01+05:30

Answer #4

The demand for ₹40–50k after 6 years of silence is legally questionable under the Limitation Act, as debt recovery typically has a 3-year window. Since you have proof of deposits and a verbal agreement from 2016, the society's sudden interest claim is likely unsustainable. You should issue a formal legal notice through an advocate, citing the delay and demanding an adjustment against your savings as previously agreed. This often compels societies to settle for the original principal.

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