Ker government brings major change in co-operative sector

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Ker government brings major change in co-operative sector

Thiruvanantapuram, Apr 11 (PTI) Kerala government today promulgated an ordinance to bring in amendments to the Kerala Cooperative Societies Act.

Among other things, it amends to limit the voting rights in District Cooperative Banks to Primacy Agriculture Cooperatives and Urban Banks.

With the ordinance coming into force, the administrative committees of the DCB’s would cease to exist and empowered the Cooperative Registrar to appoint an administrative committee or an administrator to avoid hurdle in the functioning of DCBs.

Giving details of the amendments, Chief Minister Pinarayi Vijayan told reporters that the societies other than PAC’s would be given nominal membership but would not have voting rights.

There would not be any problem for them to get loans, he said.

A committee headed by Cooperative registrar had held a study and had recommended amendments for safeguarding the interest of agrarian community in the State as well as public interest, Vijayan said.

Congress led UDF government had brought certain amendments in KCS Act and Rules in 2013, permitting all type of co-operative societies as voting members of DCBs resulting in non-credit co-operative societies got major role in the administration and control over short term credit structure, he said.

Total Deposit in the District Co-operative Bank is Rs 52455. 98 crore of which the contribution of PACS is Rs 26066 crores, which constitute 49.69 per cent of the total deposits.

The deposits of non-agricultural credit societies are Rs 7629.45 crores (14.54 per cent) of total and balance individual deposits.

At present out of the 11759 societies affiliated to 14 District Co-operative Banks, the number of PACS is 1670.

Meanwhile, Congress criticised the amendment that virtually dissolved the present DCB administrative committees and termed it as undemocratic.

KPCC President M M Hassan asked government to step back from its decision to windup elected managing committees.

He also said that amendments promulgated by the Governor was a violation of election code of conduct which was in force in view of Malappuram LS by-poll, he pointed out.

Hassan alleged that the managing committees were dismissed with political motives and to gain control over the DCBs.

This is published unedited from the PTI feed.