Winter Session should deliver Justice to Co-op Credit Societies: KSCCSF

Ahead of the Karnataka Legislature’s Winter Session scheduled from December 8 to 20 at Suvarna Soudha, Belagavi, Dr. Sanjay Hosmath, Director of the Karnataka State Cooperative Credit Societies Federation, has issued a strong appeal to the Government and MLAs, urging them to hold a serious, comprehensive and solution-oriented discussion on the long-standing issues affecting cooperative credit societies across the state.

Dr. Hosmath emphasized that even after 120 years of the cooperative movement, originating from Kanaginahal village in Gadag district under the leadership of Siddanagouda Sannaramanagouda Patil, the sector continues to grapple with unresolved challenges. He termed it unfortunate that despite being the backbone of rural economic development, cooperative credit societies still lack focused and protective government policies.

Pointing out that the Cooperation Department functions directly under the Chief Minister, Dr. Hosmath said the upcoming session presents a crucial opportunity for quick and decisive reforms. With several senior ministers and experienced MLAs, often referred to as “Bhishmas of the Cooperative Sector,” participating in the session, he expressed hope that meaningful action could finally be taken to address the concerns of lakhs of depositors, millions of members and thousands of employees who depend on the cooperative credit ecosystem.

Among the major issues flagged by Dr. Hosmath are administrative and loan recovery hurdles, tax burdens arising from Income Tax and GST, and the need for cooperative credit societies to receive the same loan classification rights as commercial banks through CIBIL scores. He further sought judicial reforms, including a special task force to expedite long-pending ABN cases and consideration of setting up a dedicated Cooperative Court to ensure faster resolution of disputes.

Dr. Hosmath also highlighted the urgency of implementing Common Application Software (CAS) across all societies to ensure transparency and good governance.

He called for new policies that would boost non-interest income and provide clear investment avenues for societies. Additionally, he raised concerns over District Central Cooperative (DCC) Banks holding large reserves and deposits of societies without offering proportionate benefits, stressing the need for a transparent supervisory system.

Noting the growing number of financially weak societies, Dr. Hosmath urged the Government to introduce targeted rehabilitation packages and financial support to revive sick units. He insisted that these issues must be addressed during this session to safeguard the future of the cooperative credit sector.

Calling for collective and non-political support, Dr. Hosmath appealed to all MLAs and ministers to treat the matter with utmost seriousness.

He stressed that the problems faced by cooperative credit societies directly impact economic security across both rural and urban Karnataka and therefore deserve priority attention during the Belagavi Winter Session.