In recent years, concerns have been raised about fraudulent loan activities in certain Nidhi companies, prompting regulatory authorities to initiate audit sweeps. These audits aim to identify malpractices such as fake member enrollments, unauthorized lending, and misappropriation of funds. The Ministry of Corporate Affairs (MCA) and the Registrar of Companies (ROC) have intensified scrutiny to ensure compliance with the Nidhi Rules, 2014, and to protect the interests of genuine members.  

The audit sweeps focus on verifying loan disbursement records, member eligibility, and adherence to lending limits. Instances of inflated deposits, unsecured loans beyond permissible limits, and failure to maintain mandatory liquidity ratios have been flagged. Authorities are also examining whether Nidhi companies are operating within their core objective of promoting thrift and mutual benefit, rather than engaging in speculative or high-risk financial activities.  

To curb fraud, regulators have imposed stricter penalties, including fines, suspension of operations, and even compulsory winding up for non-compliant entities. Nidhi companies are now required to submit detailed quarterly returns and undergo regular inspections. These measures aim to restore trust in the sector and ensure that Nidhi companies function transparently, safeguarding the savings of their members while maintaining financial stability.