Illegal transactions made by Multi-state multi-purpose credit cooperative societies have pushed thousands of people into penury across the country, says a news outlet.
Sources say these fly by night outfits appear on the scene promising unusually big returns on money invested and after cheating people either go bankrupt or just close down.
By definition, multi-state multi-purpose cooperative societies are bodies which are operational in more than one state. Among them are credit societies, banks, sugar and textile mills. However, while the banks come under the dual control of the central registrar and the Reserve Bank of India, credit societies are answerable only to the registrar.
Powers of registration and control of such bodies are vested with the central registrar who operates under the Union Ministry of Cooperation and Agriculture. Of the 1,246 such societies in the country, Maharashtra alone has 550, the highest in the country.
Maharashtra is the worst affected state where the state Cooperative Commissioner’s office has received numerous complaints about frauds.
In Tamil Nadu State one Multi-State Co-operative Society namely PROMPT MULTI STATE COOPERATIVE HOUSE BUILDING SOCIETY LIMITED registration number MSCS/CR/583/2012 having office at Head Office 509 R , 3rd Floor, Red Rose Plaza, DB Road, RS Puram. 0422-4289000 registered as Housing Society but now the management selling its branches @ Rs.5.00 Lac per branch, recruiting Development Officer, Branch Secretary and field officers those who are wiling to buy @ cost of Rs.2.00 Lacs, Rs.1.75 Lacs and Rs.65,000/- respectively. Beyond the registered by-law the management announced in their hand bills that their society will provide consumer loan to public, jewel loan, loans to SHG, Vehicles loan, promised to sell grocery @ 40% discount from market price like so many ponzy scheme declared in the public. Kindly we request to make aware among public about the fraudulent society.