Last week saw Reserve Bank of India imposing monetary penalty on four urban cooperative banks spread in Gujarat and Maharashtra.Three are located in the state of Gujarat and one in Maharashtra.

RBI imposed a monetary penalty of Rupees five lakh on Alavi Co-operative Bank, Vadodara, Gujarat for non-adherence to Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines by the bank.

Another urban cooperative bank to fall under the scanner of RBI in Gujarat is Mansa Nagarik Sahakari Bank in Gandhinagar. Apex bank imposed a penalty of Rupees one lakh for violation of Reserve Bank India’s instructions on submission of Cash Transaction Reports (CTRs) in respect of cash transaction above Rs 10.00 lakh to Financial Intelligence Unit-India (FIU-IND), New Delhi under the Anti Money Laundering (AML) guidelines.

Third bank is Porbandar Vibhagiya Nagarik Sahakari Bank on which RBI imposed a monetary penalty of Rupees one lakh for violation of its instructions regarding Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines.

Shri Mahavir Urban Co-operative Bank, Solapur was also faulted by RBI which imposed a monetary penalty of Rupees one lakh for violation of the directives guidelines of the Reserve Bank on individual/single exposure ceiling for lending operations by Urban Co-operative Banks.

The Reserve Bank of India had issued a show cause notices to all the above-mentioned banks. After considering the facts of the case and the bank’s reply in the matter, the Reserve Bank of India came to the conclusion that the violation was substantiated and warranted imposition of the penalty.

While the whole world is complaining against Urban Cooperative banks style of functioning ,NAFCUB Chairman H K Patil has words of encouragement for them and compares them better than commercial bank in terms of financial inclusion.

Talking on the eve of Federation’s 35^th Annual General Meeting in New Delhi Mr Patil said that in the year 2010-2011 the deposits of urban cooperative banks increased at the rate of 14.8% while the advances grew at 22.4%.

These figures compare well with the corresponding figures of commercial banks at 15.4% and 20.1% respectively.He said that CRAR of 91% of the Urban Cooperative Banks is more than 9%, making the sector well capitalized by and large.

Mr Patil observed that NAFCUB’ s interactions with the Reserve Bank of India during the year under report had been very fruitful.  As a result, RBI had issued a number of circulars, particularly to augment urban banks’ role in financial inclusion and had also made favourable   policy announcements.

The Report of the Malegam Committee on licensing of new Urban Cooperative Banks, constituted on the demand of NAFCUB, Shri Patil informed has been put in the public domain for comments.  The Report, he said, has also made very important recommendations on the issue of Umbrella Organization for providing financial and other support to small urban cooperative banks.

The Government’s approach to the sector, however, he said has remained at best indifferent.  Despite repeated memorandums on the adverse impact of Direct Tax Code on Urban Cooperative Banks and even small urban cooperative credit societies, the Government has not taken cognizance of the problem that the new Tax Code would create for the sector.

The sector, he said, was also worried on account of the sweeping powers proposed to be given to the Registrar of Cooperative Societies under Multi State Cooperative Societies Act Amendment Bill, without due consultation with the sector.

He said that RBI has recognized the fact that urban cooperative banks have been the earliest purveyors of financial inclusion as the very foundation of cooperative credit movement was based on the concept of support to less privileged sections of society.

In this context, NAFCUB, in December last, had launched a nationwide scheme for providing CBS on ASP model to small urban cooperative banks at affordable cost so that these banks are able to provide the same services to their clients as large commercial banks are providing and are able to increase their thrust towards financial inclusion.

NAFCUB has also launched a Research Scheme for promoting research on Urban Cooperative Banks and to involve youth in the movement.  Under this scheme Research Scholars enrolled for Ph.D/M.Phil with UGC recognized Universities are provided scholarship for their research work.

He termed cooperative credit societies as very important financial intermediaries that were doing important work of providing financial services to unorganized sector and they had great potential to do more given proper support from the authorities.

Asia’s largest dairy brand, Amul would be the official partner of Switzerland-headquartered Sauber F1 team at the inaugural Indian Grand Prix, scheduled to begin from October 28.

The Amul logos will appear on the rear wing, front face and the drivers’ helmets. The Sauber F1 Team’s race drivers in 2011 are Kamui Kobayashi and Sergio Perez.

“We welcome Sauber F1 Team to the first ever F1 Grand Prix to be held in India. Amul’s vision of success through teamwork, technology, speed and innovation matches the core

values of Formula 1,” Gujarat Cooperative Milk Marketing Federation (GCMMF) Managing Director R S Sodhi said.

This is the second big sponsorship by GCMMF this year for brand promotion. Earlier this year, it had sponsored the Netherlands cricket team in the ICC World cup.

The Sauber F1 Team is pleased to announce Amul as an official partner at the inaugural Indian Grand Prix, a statement from Peter Sauber-founded company PP Sauber AG said.

“We are proud that we can announce this partnership with Amul, one of India’s leading brands,” Chief Executive of the Sauber F1 Team, Monisha Kaltenborn, said in a statement.

PP Sauber AG was founded in 1970, for the design and construction of racing sportscars. In 1988, Sauber became the Mercedes works team in the sportscar world championship.

The Sauber Team has been participating in Formula 1 since 1993. In 2007 the team finished second in the constructors world championship, and in 2008 Robert Kubica won the Canadian Grand Prix ahead of his team mate Nick Heidfeld.

GCMMF, which markets its dairy products under the brand Amul, is amongst India’s largest product marketing organisations.

Amul’s dairy products such as butter, cheese, ice cream, fresh milk, yogurt, milk powder, flavoured milk, ghee, paneer (cottage cheese) are sold in nearly 3,000 towns in India and 40 countries in the world. Its annual sales in 2010-2011 stood at USD 2.2 billion.

By Manoj Kushwaha

Bhudatt Sharma, B.S. Dabas and others from Jai Bhagwan panel defeated Mr Vishwanath and  Shri Chand Bhardwaj to emerge victorious. Election for 12 directors took place. Later Jai Bhagwan and MK Bansal were elected Chairman and Vice-Chairman respectively.

Talking to Indiancooperative.com, the newly elected Chairman Jai Bhagwan said that increasing yearly profit from Rs 6 crore to 12 crore is our main goal. The present turn over of bank is over Rs 350 crores. Calling delhi nagrik Sahkari bank as a leading bank of Delhi Mr Bhagwan said that there are about fifty six thousand members in our society.

The CBI on Wednesday arrested the CMD of a mining company from Orissa on the charge of defrauding central cooperative body Nafed of about Rs 67 crore, official sources said.

Earlier on Tuesday, Homi Rajvansh, IT Commissioner of Agra was arrested on charge of defrauding Nafed.

A team of CBI sleuths from Delhi accompanied by local police arrested Zenith Mining Pvt Ltd CMD Syed Nizam Ahemad from a place on the outskirts of Bhuveneshwar.

Nizam, whose car and a revolver were seized, was produced before the CBI court which allowed the agency to take him to Delhi on three-day transit remand.

The businessman was accused of defrauding National Agricultural Cooperative Marketing Federation of India (Nafed) of Rs 67 crore after taking a loan of Rs 90.22 crore.

Though Nizam repaid Rs 30.47 crore, he did not repay the rest of the amount and interest, said CBI DSP P Singh who led the team.

Nafed had lodged a complaint with CBI’s Economic Offence Wing against him last year.

Nizam’s firm which operated a small iron ore mines in Sundergarh district, had taken loan from the Nafed for undertaking iron ore export.

Impressed with the success story of Gujarat Cooperative Milk Marketing Federation Limited (GCMMF), which sells its products across India under the ‘Amul’ brand name, South Africa has expressed interest in following this model in its land.

Harris Sithembile Majeke, the High Commissioner of South Africa to India, and Mvuyo Mhangwane, the South African High Commission’s Counselor-Political, visited GCMMF’s facility at Anand yesterday to understand the ‘Amul’ model of dairy cooperatives, GCMMF Managing Director R S Sodhi told media.

They had come on the invitation of Gujarat government, he said.

Formed in 1946, GCMMF started off as a dairy cooperative movement in India. Today, Amul is a brand name that is jointly owned by some 2.6 million milk producers in Gujarat and managed by this apex cooperative organisation.

The visiting South African officials said that Amul personified the best model for poverty alleviation, Sodhi, who interacted with the visitors, said quoting them.

They said the experiment would be particularly helpful in solving the problems of small dairy farmers in their country.

The delegation also noted the impressive growth achieved by GCMMF, which is now a Rs 12,000 crore (USD 3 billion) entity.

They were impressed with the model, which not only provides livelihood to 3.1 million milk producers in Gujarat but has also brought prosperity to milk producers in other

parts of India, as the ‘Amul’ model has been successfully replicated under the government’s ‘Operation Flood’ milk production programme.

The dignitaries, who spent about half-a-day at the Anand facility, were briefed on the history of Amul and the vital role played by V Kurien, the father of the country’s ‘White

Revolution’, Sodhi said.

The MD said, “We offered all cooperation to South Africa in starting a dairy cooperative on our model.”

PTI

Board of Approvals for Special Economic Zones (SEZ) has rejected the Indian Farmers Fertiliser Cooperative (Iffco) proposal to set up an integrated dairy project in its Kisan SEZ in Nellore District in the State.

The entity will be knocking the doors of the Ministry of Commerce to reconsider the decision, according to a senior Iffco official.

The board’s move may hamper Iffco’s ambitious project involving around Rs 1,000 crore.

A consortium of Iffco, Fonterra, a New Zealand-based dairy company, and an Indian company called Global Dairy Health are developing a mega dairy as part of Iffco’s SEZ.

“We are approaching the Ministry of Commerce as to why the application has been rejected when the Development Commissioner has approved the same. We are meeting the commerce secretary soon,” the official who did not want to be identified told PTI.

The Kisan SEZ will entail an investment of about Rs 5,000 crore and will be spread over 2,600 acre.

The SEZ will undertake activities related to producing agricultural and milk products.

The board rejected the request of the developer for setting up an integrated dairy project, spread over 225 acres in the non-processing area of the SEZ, as the request was not in conformity with the SEZ Act and Rules.

The official said Iffco had conveyed the Board that it may not avail of SEZ benefits until they reach milk volume of 4 to 5 lakh litres per day. Iffco has already sough government permission to import 3,000 cows from New Zealand in the first phase.

With the import of cows, the milk yield is projected to be around 1 lakh litres a day, which is not sufficient to set up milk products plant, the official said, adding that at least 4-5 lakh litres was required for the plant.

Iffco wants to sell milk and other products like butter and cheese under the Iffco brand.The company plans to sell its dairy products in domestic and foreign markets.

PTI

Homi Rajvansh was at the centre of tie up business losses that reduced nafed to a poor shadow of its past, has been arrested from Agra.

Even as farmers in Bihar are raising hue and cry over alleged black marketing and non-availability of fertilisers, official reports say huge quantities of fertiliser are being clandestinely smuggled to Nepal from areas close to the Indo-Nepal border.

Official information received from Sashastra Seema Bal (SSB) headquarters in Patna said personnel of the force have seized 8,394 sacks of fertiliser, each containing 50 kg, which

were being smuggled to Nepal from some districts of Bihar since January this year.

While 4,056 sacks of fertiliser were seized from border areas in Sitamarhi district, the SSB jawans seized 2,935 sacks from Madhubani, 530 sacks from Jainagar, 216 from

Narkatiaganj, 213 from Bathnaha, 132 from Araria, 198 from Rajnagar and 98 from Birpur, SSB sources revealed.

Meanwhile, state minister for Agriculture Narendra Singh has rubbished Opposition parties’ charge of black marketing and smuggling of urea.

The Opposition parties also accused the state government of creating an ‘artificial’ shortage of urea as it has failed to “lift the quota of urea already allotted to it by the

Centre”.

“All these allegations are baseless… wherever there is a report of irregularity or black marketing of fertilsier, the agriculture department swiftly acts on the complaint,” Singh

claimed.

Singh reported that the department had conducted raids at 585 places and seized 25,704  sacks of urea during this Kharif season and registered 92 FIRs in black marketing cases.

The minister on the other hand accused the Centre of showing a ‘step-motherly’ attitude towards Bihar over allotment of Urea for the kharif season and warned of vehement

opposition against the alleged treatment.

Singh said it was decided at talks between the state and the Centre that the latter would allot 7.25 lakh metric tonnes urea between April and August this year.

”Unfortunately, the state government has so far received 5.65 lakh metric tonnes which is 22 per cent less than the figure agreed to,” he said.

When there was not much requirement of urea during the beginning of Kharif season in April, the Centre supplied 2.03 lakh metric tonnes, he said and alleged that the Centre made available 1.27 lakh metric tonnes against the requirement of 2.10 in the month of August.

Against the allocation of imported urea for Bihar between April and August at 1.40 lakh metric tonne, the Centre supplied 20,454 metric tonne while states like Maharashtra,

Uttar Pradesh, Haryana, Madhya Pradesh, Punjab and West Bengal received urea more than the actual allotment during the period, he claimed.

Agriculture department sources further said that the department had made maxium seizure of Urea from Sitamarhi (8084) on Nepal border followed by 3275 from Muzaffarpur, 3200 from Rohtas, 2000 from Nawada, 1550 from East Champaran,

1077 from Saharsa and 1000 from Munger.

The department also cancelled licences of 76 vendors for blackmarketing Urea and suspended licenes of 170 others.

Protests by farmers against non-availability and black-marketing of urea were witnessed recently in the districts of Rohtas, Jehanabad, Gaya, Aurangabad, Samastipur and several other places.

Delivering the 16^th Vaikunthbhai Mehta Memorial Lecture in Delhi on Monday organised by the National Cooperative Union of India Dr.Prakash Bakshi, Chairman of NABARD said that the role of cooperative leaders assumes added importance in present times when the cooperatives are facing rough weather.

Strengthening PACS is of paramount importance. Cooperative leaders should make it truly operational and democratic in a manner that it proves to be a one stop center for solving all kinds of need of farmers, Mr Bakshi emphasized.

If you want to be autonomous you have got to be viable. Taking help from government and demanding autonomy would not happen, he said amidst thunderous applause from assembled gathering.

For thirty years elections have not taken place in Tamil Nadu and they still call themselves cooperative.Better accept that it is like a government or fight for restoring the democratic set up. Indicating towards those present on the dais he said that It is the job of this august gathering to fight for cooperative cause. He asked “ how can you be silent?’

Whenever attempt to throttle cooperative spirit is made it the us bureaucrat who fight not the cooperative leaders. Banks take revival package from NABARD after acceding to our demand of suitable amendment .Once they get the money, they again re-amend their by laws and none of the cooperative leaders object, , he lamented.

Cooperative is my passion and it has great intellectual appeal.It attracts people globally for offering a business model where cost is less and benefits are many. Credit cooperatives with its vast network can be the important vehicle for inclusive growth in the country. He advocated growth of professionalism in primary agriculture cooperative societies (PACS).

“NABARD has formulated an institutional protection and deposit safety scheme for PACS on the lines of similar schemes operating in Germany and Hungary, he said.

He said that with ever increasing number of small and marginal farmers, and hence oral tenancy, aggregation models for financing, agronomic practices, inputs supply, use of equipment, marketing and processing were urgently required.  To this end, the cooperatives can play an effective role, he said.

To us in NABARD, formation of village committees and JLGs within these village committees looked a possible step and we have already initiated such a move,” said Dr. Bakshi.

He further said, “We are also designing a programme to equip selected PACS in each district with warehouses conforming to the requirements of the Warehousing Regulatory Authority so that farmers could benefit from product aggregation, quality storage and enable him to not only take pledge loans or trade against warehousing receipts.

He urged the members of the PACS to be active participants with voting rights.

The Adviser (Agril.) to the Planning Commission Shri Surinder Singh who was the Guest of Honour said that the 12^th Five Year Plan will be based on inclusive growth particularly focusing on health, food, education and employment.  There will be a separate chapter for cooperative reforms.  He urged the cooperatives to play a greater role in financial inclusion.

NCUI President, Dr. Chandra Pal Singh Yadav suggested that the cooperatives can play a greater role for the upliftment of the weak and marginal section of the society, particularly when the world is facing a financial crisis.  He suggested professionalism and modernisation of the cooperatives.

NCUI Chief Executive Dr. Dinesh said that cooperation was the only way to fail out the poor from poverty in this country and urged the co-operators to play an active role.

A Book on Vaikunthbhai Mehta Memorial Lecture 1991-2009 and a Report on Strengthening of Data Base and Net-working of Fisheries Cooperatives in Eastern Zone was released by Dr. Bakshi