The custody of Education Fund should be shifted from National Cooperative Union of India (NCUI) to some neutral government agency such as National Cooperative Development Corporation (NCDC). This demand came from Dr G N Saxena, IFFCO.

Dr Saxena said that only a few profit making Cooperatives make contributions to the Education Fund  and our heart bleeds to see our hard earned money being not utilized properly.

Readers may be aware that according to Multi State Cooperative Act, all profit making cooperatives have to contribute one percent of their profit towards training and development of cooperative movement in India. NCUI being the apex body is the custodian of this fund so far.

IFFCO being the most successful cooperative has to contribute huge sum towards the Education Fund. Last year it had contributed about Rs 4.5 crores. According to an estimate this figure may touch 10 crore this year.

Earlier, there was talk of education fund being diverted to renovate the guest house in NCUI and this led to heart burning among the contributors.

Talking to Indian Cooperative.com,  Dr Saxena emphasized the need to have a government body like NCDC to take care of this fund.

State-run Central Warehousing Corporation (CWC) on Thursday paid its highest-ever dividend of Rs 14.22 crore for 2009-10 to Food and Agriculture Minister Sharad Pawar.

“I am extremely happy that irrespective of economic slow down and increase in the operating expenses, CWC has declared an all time high dividend. It is a pleasant change to see a PSU declaring this kind of dividend,” Pawar said after accepting the cheque in New Delhi.

He said that CWC is focusing on building storage facilities for foodgrains keeping in mind the national priority.

CWC has a big plan to construct godowns on its own land to store foodgrains to the extent of four lakh tonnes in the next two years, besides creating 5.82 lakh tonnes of storage capacity under PEG-2009 scheme in Gujarat, Maharasthra and Kerala, he added.

Currently, CWC operates 482 warehouses with a total storage capacity of 105.97 lakh tonnes, of which the storage space for foodgrains is about 43.88 lakh tonnes.

According to CWC Managing Director B B Pattanaik, who presented the cheque, the Corporation has achieved the highest turnover of Rs 987.95 crore in the 2009-10 fiscal, against Rs 849.25 crore in the previous year, said the Corporation. The post tax profit for 2009-10 was 130.52 crore, up by 48.39 per cent from previous year, he said.

This high performance could be achieved due to increase in storage capacity by about one lakh tonne for foodgrains and an improvement in capacity utilisation to 85 per cent as against 82 per cent of the previous year, he said.

Pattanaik, however, said that the turnover could have risen substantially had the cost of storage been revised upward by the government. “Currently, storage cost for 50 kg of foodgrains is only Rs 2.06 per 50 kg for a month based on the base year 2005-06.”

Besides, handling of containers, revenue earned out of container rail transport operations and pest control activities also registered growth, he added.

Courtsey:PTI

Election steam is building up for a lone seat of cooperatives in Central Ware Housing Corporation(CWC). The two candidates Harbhajan Singh of Punjab and Virendra Singh of NCCF are busy garnering votes for their candidature.

Harbhajan Singh is said to be a protégé of former union agriculture Minister Balram Jakher while Virendra Singh comes from the party of present agriculture Minister Sharad Pawar. Virendra Singh also happens to be Chairman of NCCF, apex body of consumer cooperatives and is said to be close to Sharad Pawar.

After winning a rather tough election to become the Chairman of NCCF, Virendra Singh has plunged headlong into election to come on the Board of Central Ware Housing Corporation.

The election is scheduled for 1^st of November. CWC is a Public Sector Undertaking but has one representative from the cooperatives. It has a board of 15-16 members and is dominated by IAS officials followed by high profile Bankers. Giving cooperatives its due, one seat is allotted to cooperative sector.

There are 1007 votes spread across Indian states with the maximum representatives coming from UP. Only primary cooperative societies are its members. Both the leaders Harbhajan based in Punjab and Virendra in Mumbai are heading towards Delhi on 30th October.

Election is keenly contested with charges of allegation and counter allegations flying thick and fast. Talking to Indian cooperative Harbhajan Singh alleged that Virendra Singh is taking help of Sharad Pawar to influence voters. The votes coming by post are being included even after the due date (4th October) has lapsed, added Harbhajan.

Harbhajan claims that postal votes should be opened before the contestants which are not being done.

Refuting Harbhajan’s charges Virendra Singh claims that unlike cooperatives the elections in CWC takes place under strict supervision.

Watch these lines to know more about the CWC elections.

Cooperative banks cheap loan are being massively misused by the biggies of Delhi. Whether the connivance of cooperative banks are there or not is a matter of investigation but NABARD’s data on the loans are earth shaking.

Delhi, which has a small cultivable land is claiming loans next after Punjab.

According to the National Bank of Agriculture and Rural Development (NABARD) data on loans given out by cooperative banks, there are more farmers doing agriculture in Delhi than Madhya Pradesh, Uttar Pradesh, Karnataka and West Bengal.

The farmers in Delhi were allotted loan of Rs 22,077 crore in 2009 alone at mere 5% rate of interest, which is the second highest after agriculture-rich Punjab.

Delhi’s loan disbursal amount is bizarre, as the city has a mere 39,000 hectare of cropped land, of which 26,785 hectare is the net area sown.Citing agriculture as their profession, hundreds of Delhi’s residents have taken loan on cheaper rates.  According to the government officials these residents are city’s elite who have massive farmhouses and the so-called agriculture land in these farmhouses which are located in the outskirts of the city.

“These are owned by wealthy businessman and politicians. These farmhouse owners acquire loans citing agriculture as their profession. But these are only used for agriculture purposes,” official said.

According to the official, the only agriculture activity in these farmhouses is the planting of vegetables and flowers.

The owners also take loans as Kisan Credit Cards, which is 15,000 per hectare.

“The process is easy. A loan of up to 1.5 lakh per hectare is given without presenting any surety.”

According to an official of the agricultural directorate, “Getting illegal loans in the name of farming is quite rampant in Delhi. This land may be categorized as “agricultural”, but the fact is that it has become residence of billonaires.”

Nafed tie up loss has begun to rob the peace within the family of former chairman Ajit Singh. Ranjit Singh who happens to be the brother of Ajit Singh and is also the vice Chairman of Indian tourism cooperative has charged Ajit Singh’s son Vishal Singh of threatening him with dire consequences on phone.

Ranjit has got a police complaint registered with Safderjung Enclave police station against Vishal Singh. In the complaint he has accused Vishal of threatening him to take his life. My mother is member of Parliament and you do not know my clout, Vishal has said to have said Ranjit.

Talking to Indian cooperative.com, Ranjit said that it was on phone that Vishal threatened him.Vishal happens to be on board of Nafed and is also vice Chairman of NCCF.

According to sources among the 31 persons against whom  Central Registrar issued show cause notices in Nafed corruption cases, Vishal Singh,his mother,who is member of parliament and Ajit Singh’s mother-all figured.

In their petition given to Central Registrar Vishal and his mother wrote that the name of old lady and mother of Ajit Singh be withdrawn.

Talking to Indiancooperative.com Vishal Singh,Vice Chairman said that he has not threatened Ranjit Singh his uncle as he has not even met him for many months. He admitted that he had indeed informed him about their (Vishal and his mother’s ) petition to Central Registrar where in they wanted Ajit Singh’s mother to be kept away from the probe.

Referring to his uncle’s charges, Vishal told Indian cooperative that he(Ranjit Singh) is free to do what ever he wants. I am not scared of police cases as I have hardly done any thing wrong. Police can verify my call detail, added Vishal.

If the govt believes that my father made Rs 1600 crores in the Nafed tie up loss, it is free to enquire. I have a hotel gifted by my grand father and a few flats acquired by legal means. How can we give Rs 1600 crores to government, lamented an anguished Vishal. I will certainly defend my father till end, he added.

Meanwhile, Indian cooperative has come to know that probe in the tie up loss has gathered momentum with those charged with corruption giving their replies to the Central Registrar.

A situation of impasse at Nafed is likely to be broken soon with govt increasing its stake to 51 per cent and divesting Board’s power. Sanjiv Chopra, the government appointed Managing Director is likely to emerge all powerful.

On November 21 and 22^nd, more than 2000 Directors of 500 cooperative urban banks will assemble at Nashik at a state level conference.

The Union Agriculture Minister Mr Sharad Pawar will preside over the function to be attended by the Union Finance Minister Mr Pranav Mukerjee.

Sharad Pawar’s daughter and Member of Parliament Supriya Sule is the convenor of the programme.

In the changing economic scenario role of Urban Cooperative banks is assuming added significance and this conference will address the challenges before the UCBs.

Many economists are of the view that country’s ills can be addressed by strengthening the urban cooperative banks but lack of professionalism among them is the main handicap.

Also, lack of transparency and control of a few at the decision-making  level in some of the UCBs are defeating the concept of cooperatives.

The high and mighty of country such as Sharad Pawar and Pranab Mukerjee should sit down to hammer out a fool proof solution.

The RBI appointed Committee has many members including Mukund Abhyankar, Director ,Cosmos Bank.

Dr. Abhyankar has been working in the co-operative banking sector for a long time. His   work included assignments from Reserve Bank and the State Government. He also acted as a member of  various other committees.

He has worked on the K. Madhavrao Committee named in 1997. At that point of time, he had studied the details of about  2000 banks all over India and sent his recommendations to the Reserve Bank which the RBI readily accepted.

For past 11 years he has been the Director of the ‘ NAFCUB’ and has been serving as the Director of Cosmos Bank for more than 30 years along with handling the post of Chairman for around 9- 10 times.

Dr. Abhyankar is the only representative of the nation’s Urban co-operative banking sector in this committee.

The rest of members of this newly appointed committee include – Mr. Umeshchandra Sarangi ( Chairman, NABARD), Dr. S. K. Goyal ( Secretary, Co-operative department, Maharashtra State), Mr. K. Ilumlai ( Director, IGNOU), Mr. H. K. Patil ( Chairman, National Federation of Co-operative Urban Banks) and Mr. A. Udgaata ( Chief General Manager, Urban Banks Department ( U.B.D.) – Member Secretary).

GCMMF headquarters Anand in Gujarat had two high profile guests in the last week.

The doyen of  White revolution in India, Mr Vergese Kurian visited the Anand ,the milk headquarters. This became news as it was Kurien’s first visit after his departure from GCMMF.

Second visitor was Israel’s Consul General in Mumbai, Orna Sagiv, who visited Amul Dairy and the Gujarat Co-operative Milk Marketing Federation  to understand the Amul model of cooperatives which is currently synonymous with the White Revolution in the country.

Sagiv met Mr R. S. Sodhi, the Managing Director of GCMMF and Rahul Kumar, Managing Director of Amul Dairy during her visits.

Kurien’s purpose of visit is though unknown. But an old man now that he is, it may have been a nostalgic drive down the memory lane.

GCMMF, the Cooperative which owns famous brand AMUL has been in news for all the wrong reasons. Bhatol-Vyas spat, the telephone controversy and the ongoing non cooperation of board members to the Chairman are to cite only a few.

Many see Kurien as incapable of staging a comeback and thus his visit acquires no political significance other than customary.

The Consul General,on the other hand was  overwhelmed by the presence of Amul products in the international market.

Sagiv expressed keen interest to explore the possibility of collaboration between Amul and Israel.

The Reserve Bank of India has imposed a penalty of Rs 5.00 lakh on Solapur Nagari Audyogik Sahakari Bank Niyamit, Solapur, Maharashtra.

The penality came as the cooperative bank violated the instructions on investment in government securities and violation of supervisory action imposed on the bank  by the RBI.

The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted written reply.

After considering the fact of the case and the bank’s reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty.

The RBI in exercise of powers vested in it under the provisions of Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, took the decision.

Pen Co operative Urban bank,situated in Raigarh,Maharashtra fell victim to RBI scanner and was imposed a fine.

The Reserve Bank of India had issued a show cause notice to the bank in response to which the bank had submitted written replies.

On a careful examination of the bank’s reply, the Reserve Bank of India found that the violation was conclusively established and the penalty was accordingly, imposed.

The Reserve Bank of India has imposed a penalty of Rupees One Lakh in exercise of powers vested in it under the provisions of Section 47(A)(1)(b)  for violation of the provision of Section 35(2) of the Act.