No more coops in Rajasthan! Cooperators up in arms

Cooperators associated with different co-ops of Rajasthan are criticizing the state government decision stopping registration of credit cooperative societies in Rajasthan. They have warned that if the decision is not withdrawn they will knock at the door of High Court in this connection.

There is no credit cooperative federation in the state and Sahakar Bharati is planning to submit a proposal to the government.

“The government has taken the decision in a hurry without knowing the facts. As the 97th Constitutional Amendment allows every citizen of India to form a cooperative society and the government decision goes against the constitution”, said Hanuman Agarwal, President, Rajasthan, Sahakar Bharati,

He said, there are over 1300 credit cooperative societies are in the state and a few that have indulged in financial irregularities should be punished but it is not justified to harass the whole co-op sector”, he asserted.

Recently, in the wake of investors being duped by credit cooperative societies, the Rajasthan government decided to stop their registration.

Meanwhile, the Rajasthan Chapter of Sahakar Bharati is planning to meet the concerned authorities to hand over a draft proposal.

There are over 6,000 PACS and Lamps cooperative societies in Rajasthan out of which around 2500 PACS have indulged in massive financial irregularities but the government has yet to act against them. Why is the government not acting?, Agarwal asked.

The government has also made it mandatory for all the existing credit cooperative societies to put all their deposits in cooperative banks.

These credit cooperative societies will also have to send their progress reports every month to cooperative banks. Accounts of the erring societies will be seized.

The government has taken the decision after scams involving crores of rupees broke in several credit cooperatives of the state including Adarsh Credit Cooperative, Navjeevan Credit Cooperative, Arbuda Credit Cooperative Society and many others.

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