With the CBI digging deep into the alleged involvement of ruling BJD politicians in the chit fund scam, the Opposition are demanding that it should also probe as to under which circumstances the Odisha Self-help Cooperative Societies Act, 2001 was introduced and repealed 13 years later, when the scam came to light.
The State Government had repealed the Odisha Self-help Cooperative Societies Act, 2001 through an ordinance in June, 2013 and brought all cooperative societies under the Orissa Cooperative Act, 1962. In the repealed Act, there was no provision for Government to audit these cooperatives and examine their account books.
The ordinance was seen as an attempt by the Government to increase its control over the cooperative credit societies and curb their independent functioning. Later, the State Government brought a Bill in the Assembly to repeal the Act.
According to the provisions of the ordinance all the 1634 self-help cooperatives functioning in the State were asked to reconstitute their Board of Directors within three months in accordance with the 1962 Act. The new arrangement also allowed Government to audit these cooperatives and examine their account books.
-IE
