Published Paper Details:

This paper examines the paradoxical phenomenon of "kidnapping cooperatives in a cooperative manner," where democratic principles are subverted for self-interest, undermining the cooperative ethos. It analyzes the theoretical underpinnings, including cooperative governance, agency theory, and power dynamics, highlighting how these are exploited. A comprehensive literature review explores elite capture, information asymmetry, political interference, and regulatory weaknesses. The study uses descriptive methodology, drawing from primary and secondary sources, to illustrate the issue with Indian cooperative fraud cases. It reveals a significant number of defunct and liquidated cooperatives, emphasizing the financial and social costs. The paper proposes recommendations for strengthening governance, promoting transparency, and fostering member engagement to safeguard cooperative integrity. It also highlights the Indian governments recent cyber security initiatives to protect cooperative financial institutions.