Cooperative societies demand scrapping amendment to Act

MARGAO, JUNE 27
Asserting that the Amendment to Section 59 of the Co-operative Act will spell doom for the cooperative movement in the State, representatives of various credit cooperative societies have demanded the government to scrap the Amendment forthwith or face a stir.
A meeting of representatives of various credit cooperative societies held in the city here on Sunday have opposed the amendment and have decided to call on Cooperation Minister Ravi Naik and other officials to withdraw the amendment.
Chairman of the Quepem Credit Cooperative Society Prakash Velip, who took the initiative to bring under one banner heads of various cooperative societies, said the meeting firmly opposed the Amendment in the interest of the cooperative movement.
He said the Amendment mandates a Board of Director of a cooperative society to sign a bond stating that any loss accruing to the society during his tenure should be recovered from him. “This is not a healthy trend for the cooperative movement in the state. The Amendment making the Directors liable to make good any loss is not acceptable. How can a director be made responsible for any decision to sanction a loan. There can be a good loan, which can turn sticky later. The director cannot be held responsible  for the loss”, Velip asserted.
He said unlike the corporate, a board of director of a credit cooperative society is not paid for his job and does the honorary job without much expectations in the interest of the community. “If the Amendment is not scrapped, no person will come forward to take part in a cooperative movement and will not take any risk in a decision making process’, he added.
Velip claimed the Amendment was passed without any debate in the Assembly and said the government should delete the same in the coming Assembly session, beginning from July 19.
The meeting also took objections to the rules framed by the government under the Amendment and vowed to take the matter to the courts if the government fails to withdraw the Amendment and rules.
Representatives of around 40 credit cooperative societies attended today’s meeting and have resolved to lead a delegation to the cooperation minister Ravi Naik before the ensuing Assembly session.