Throwing its weights behind Karnataka headquartered Lokmanya Multipurpose Coop Society, Sahakar Bharati has written a letter to the state govt demanding a clarification letter from the govt which would help depositors regain their faith in the multipurpose co-op society.
It bears recall that the Govt of Karnataka, earlier, issued notification attaching properties of the Lokmanya Multipurpose Coop Society – a Multipurpose Cooperative Society.
Arguing that the KPID Act cannot be made applicable to the Lokmanya Multipurpose Coop Society as it is registered and regulated under the Multi State Cooperative Societies Act, 2002, the leaders of RSS leaning body asked the state govt to clarify.
The letter which is addressed to Revenue Minister R Ashoka is signed both by the President and National General Secretary of Sahakar Bharati Ramesh Vaidya and Uday Joshi respectively.
Recalling the letters sent earlier to the Deputy Registrar and RoC, the leaders state that the Lokmanya Multipurpose Coop Society has not received any complaint from any depositor against the captioned Society for not allowing withdrawal of Deposits or Interest earned thereon.
“The Society has many branches in the States of Karnataka, Goa and Maharashtra. Publication of notification on 17th July, 2020 has resulted in tarnishing the image of the Society and spreading panic among the depositors leading to avoidable premature withdrawal of deposits and consequent liquidity strains”, states the letter.
“We, therefore, request you to direct the concerned Department to immediately issue a Clarificatory Statement to reassure the depositors of the Society”, it says.
The letter also quotes from the relevant part of the KPID Act to buttress its claim. “ In this regard, we draw your attention to Sec No. 2 (4) of the KPID Act which reads as under: “Financial Establishment means any person or a group of individuals accepting deposit under any scheme or arrangement or in any other manner but does not include a corporation or a co-operative society owned or controlled by any State Government or the Central Government or a banking company as defined under clause (c) of Section 5 of the Banking Regulation Act 1949”.
