Madhya Pradesh government is in the process of cancelling the registrations of over 10 thousand cooperative societies in the state including District Cooperative Agricultural Development Banks. The process is likely to end soon.
The government has taken decision of cancelling the registration of co-ops ostensibly on the ground of some of the societies being in the process of liquidation and others are functional only for the namesake.
It was announced by Cooperative Commissioner M K Aggarwal during the state level meeting of officers of cooperative societies. He said that registration of at least 25 percent of these cooperatives would be canceled in the next three months, media reports say.
He said that action against transferring various assets of these cooperatives to the government will be taken against the loans received from the government as per the set norms.
Loans will be transferred to district banks, 11 Cooperative Agriculture and Rural Development Banks Shahdol, Seoni, Bhind, Chhindwara, Tikamgarh, Raisen, Mandsaur, Khargone, Dewas, Balaghat and Ujjain submitted proposals to transfer the outstanding loans to District Cooperative Banks at the zero-interest rate scheme.
The remaining 27 banks were instructed to complete the operation. Under the Cooperative Act, only 4 banks, Chhindwara, Mandsaur, Rajgarh and Ujjain, submitted information as to the action of publishing the status of assets and liabilities of banks by liquidators. The remaining 34 banks were asked to submit information in this regard soon.
Fixed assets will be transferred to the government. Directions were sent to the state government to send proposals for transferring the immovable assets held by the Agriculture and Rural Development Banks against the loans given to the government by the government at the state level.
All banks were asked to submit an action plan to issue final orders related to liquidation. Instructions were given that action should be taken as per instructions of the Cooperative Act and the High Court in respect of salaries and obligations of various officers / employees of District Cooperative Agriculture and Rural Development Banks.