Rajasthan based Aditya Credit Cooperative Society Chairman Raghuveer Singh Charan has written a letter to Nafcub President Jyotindrabhai Mehta seeking his support for the implementation of “Rajasthan Agricultural Credit Operations (Removal of Difficulties) Act (RACO RODA) in the context of credit societies for the recovery process. The Aditya cooperative is a multistate cooperative society.
He also requested help in making the law for returning the deposits of the members. The copy of the letter is with Indian Cooperative and we are reproducing below for our readers’ perusal.
It reads, “In Rajasthan several credit cooperative societies have indulged in misappropriation of funds. The latter were depositors’ money parked in their societies. This has tarnished the image of all credit societies of Rajasthan. When such cases come to light, the state government of Rajasthan takes strict action against societies so that depositors could get their money back. I thank the state government for taking the initiative”.
“Stringent rules are being made by the Rajasthan government and action is being taken against credit cooperative societies which do not pay depositors their money on time. The ministry has directed the officials concerned to deal with the matter.”
“It is regrettable that there are no cooperative society federations addressing our issues. In cases of irregularities by credit co-operative societies, the government and the cooperative department find fault with multi-state societies”, according to the letter.
The letter further reads, providing loans to members is also an important part of the society. However, society is blamed if members defaulted on loans. But such bad loans have not only seriously affected the society’s financial position but also threaten the very existence of the society.
In this context, it is requested from the government to formulate rules regarding the return of the members’ deposits to Credit Co-operative Societies as well as the recovery proceedings under Section 99 and 100 under the Cooperative Act and / or other banks. In the same way, under the ‘RODA’ Act, if any act or authority is granted, so that the recovery is completed on time”, it concluded.