The latest amendments to the Kerala Co-operative Societies (Amendment) Bill will give a new direction to the cooperative sector, closing the loopholes for irregularities that has plagued the sector, Minister for Cooperation V.N.Vasavan has said.
The Assembly passed the third amendment bill, which has 56 amendments, unanimously.
He said on Friday that one of the major amendments has been in fixing the term limits for office bearers. Though some efficient administrators had aided in the growth of societies over successive terms, it has been noticed that irregularities are more common in groups in which the same persons have been in charge for a long period. As per the amendment, the term of the governing body in credit societies has now been limited to three terms.
As per another amendment, only those who are members of the society can be made part of the administrative committee. The inspection system has been strengthened, with unit inspectors now being required to make timely inspections and submit detailed reports. The concurrent audit system in place currently has been replaced with team audits, in view of the irregularities unearthed in the Karuvannur Service Cooperative Bank. The audit teams will be rotated regularly to prevent any malpractice.
In the annual general body meeting, the liabilities of the society employees as well as their close family members have to be published. Subsidiary societies cannot henceforth be formed under existing societies. A seven member committee has been formed to frame the rules based on the amendments, said the Minister.
Mr.Vasavan said that the multi-state cooperative societies now being formed has emerged as a threat to the sector. A total of 33 such societies have already been registered in Kerala, while 68 branches of societies registered in other states have also been opened. However, many of them function without any norms, as they are outside the State’s scrutiny. It also poses a threat to the investors as there are chances of fly-by-night operators closing down the societies and disappearing with the investments.
