Sahakar Bharati, Punjab has urged the Punjab Government to withdraw the 26 April 2021 amendment to Section 55 of the Punjab Cooperative Societies Act, 1961, contending that the six-year limitation for referring disputes to the Registrar weakens the protection of cooperative institutions against financial fraud.
In a representation signed by State President Balram Dass and General Secretary Baljinder Singh, the organisation said the amendment prevents legal proceedings for recovery of embezzled or misappropriated funds if disputes are not referred within six years.
It pointed out that before the amendment, Section 55 merely required such disputes to be referred to the Registrar without any time limit. Sahakar Bharati argued that since elected directors can remain in office for up to ten years through two consecutive terms, dishonest office-bearers could conceal irregularities until the limitation period expires, escaping financial liability.
The organisation said the provision undermines financial accountability and threatens cooperative assets and public funds, urging the government to repeal the amendment in the larger interest of Punjab’s cooperative movement and its members.
