CM extends dividend limit to 20%; 87000 co-ops to benefit

Participating in a function organized by a TV channel in Gujarat, the state Chief Minister Bhupendra Patel announced that the Gujarat Government has allowed the cooperative societies of the state to pay a maximum 20 percent dividend to their shareholders.

“The decision will benefit the shareholders of more than 87000 cooperative societies engaged in different types of businesses. The notification in this connection has been released”, said Patel while addressing the event.

Gujarat had earlier kept a maximum limit of 15 per cent dividend for the co-operatives, which used to be extended in special cases after following the due process. Dilip Sanghani led GUJCOMASOL, for example, gave a dividend of 22% after seeking state govt green signal.

The event was also marked by the felicitation of several people who have made outstanding contributions in health, art, environment, cooperation and other fields.

On this occasion, NCUI President Dileepbhai Sanghani, who doubles as the Chairman of IFFCO, was felicitated with a memento for his contributions in the cooperative sector.

Tweeting about the event, the Gujarat Chief Minister wrote on his twitter wall, “Attended NEWS 18 Gujarati channel Gujarat Ratna Samman program and honoured the gems of Gujarat who have made outstanding contributions in various fields including health, art, environment, cooperation. On this occasion, I called upon everyone to make a collective effort to realize the goal of building a developed Gujarat for a developed India”.

NCUI President Dileepbhai Sanghani also lost no time in extending thanks through ‘X’ to the Gujarat Chief Minister Bhupendra Patel, Cooperation Minister Jagdishbhai Vishwakarma for allowing co-ops to pay 20 percent dividend to their shareholders.

A notification issued by the Agriculture, Farmers Welfare and Cooperation Department, Gujarat, reads, “In exercise of the powers Co- conferred by section 68 of the Gujarat Co-operative Societies Act, 1961 (Guj.X of 1962), the Government of Gujarat hereby prescribes the twenty percent as the maximum rate at which the payment of dividend by a society shall be made and no society shall pay the dividend to its members exceeding the rate, so prescribed”.

“Provided that the dividend payable in case of co-operative credit structure shall be subject to the guidelines of the Reserve Bank of India or, as the case may be the National Bank”, the notification further reads, which was signed by Rajesh Joshi, Deputy Secretary to the Government.