If a cooperative society provides a loan in a fraudulent manner, it can have serious legal consequences. Here are some potential outcomes: Criminal Charges: If the loan fraud involves intentional misrepresentation, forgery, falsification of documents, or other fraudulent activities, criminal charges can be filed against the individuals involved. Depending on the nature and severity of the fraud, the charges may include offenses such as fraud, forgery, cheating, criminal breach of trust, or conspiracy. Civil Liability: The cooperative society may be held civilly liable for its involvement in the fraudulent loan. This could result in legal actions, such as a lawsuit, initiated by the affected parties seeking compensation for financial losses, damages, and other related expenses. The cooperative society may be required to repay the loan amount, reimburse any losses incurred, and potentially pay additional penalties or punitive damages. Regulatory Consequences: If the fraudulent loan activities are discovered, the cooperative society may face regulatory consequences from the governing authorities. This can include fines, penalties, license revocation, or other disciplinary actions imposed by the cooperative society's regulatory body. The specific consequences will depend on the laws and regulations applicable to the particular cooperative society. It is important to note that the exact legal consequences will vary based on the jurisdiction and the specific details of the fraudulent loan. It is advisable to consult with a legal professional who can provide accurate advice and guidance based on the specific circumstances of the case.