The Indian Navy Civil Employees Co-operative Society which today stood second among the Co-operative societies in Visakhapatnam with 9627 members is relentlessly engaged in serving the financial needs of the members. While the society was established in July, 1955 with the efforts of Late Sri.Y.Jagannadham, Secretary; Late Sri.Vanka Thathayya, Treasurer and LCDR Srinivas, President with an initial membership of Thirty(30), its services were expanded only when Sri.T.V.Rajagopalan (First CGO, SO(Civ) of ENC) became its President in 1958. After the 1971 Indo-Pak war, the significance of the Eastern Naval Command reached new heights and the Government took speedy steps for its development. Thousands of new recruits joined in service during the decades of 1970 & 1980. The Society which was supposed to grow by absorbing new members, was fallen in deep crisis and lost even those people who were already in the Co-operative movement
The allegation of misappropriation of Society funds by the Manager in 1972-73 has lead to difference of opinion between the management of Eastern Naval Command and the Society's governing body. As the management did not appointed the President, there was nobody to regulate and control the activities of the governing members and as a result, some of the staff colluding with the governing members, misappropriated the funds of the Society, which was not even traced out by the Audit. When the elected body of 1980 made the re-audit of Society's Accounts since 1975-76, the irregularities were traced out which led to court cases between staff and governing body.
Due to these irregularities and court cases, members have left the society and no new member has joined. The income of the Society drastically fallen as DCCB did not given loans. As a result, the society incurred heavy losses to a tune of Rs.18 lakhs and it reached the verge of closure by 1984-85. During this period, gross anomalies, such as non-stoppage of recovery from salary even after completion of loan amount; forceful recovery from salary of the member by not accepting his resignation; non-payment of interest on Thrift Deposit which was legally due to members; were cropped up
In this background, the then leadership of the Union met the District Collector, Co-operative Department, Dist. Co-operative Bank and the management of Eastern Naval Command, explained them the feelings of the members and impressed upon them the need of rejuvenating the Society. Because of these efforts Dist. Co-operative Bank agreed to render financial assistance, Co-operative Department assured to take action against the persons responsible for misappropriation and the ENC management agreed to nominate the President. There after the New body and the newly nominated President took the charge and initiated steps for better function of the Society