In its report the standing committee on Agriculture, Animal Husbandry and Food Processing says “the Committee has noticed that no liquidation case of defunct MSCSs has been settled during the last 10 years.”
“The Committee, picking up on this fact, urges the Ministry of Cooperation to take all necessary corrective measures to protect the interests of all the Members of these MSCSs at the earliest”, it says.
The Committee has noted that “the liquidation proceedings are time consuming due to legal proceedings in various courts of laws and other tribunals / forums, involvement of multiple Law Enforcement Agencies, multitude of stakeholders like depositors, employees, members, etc”. It wants the Ministry to intervene for the sake of members of these co-op societies.
The Standing Committee also recommended that the Ministry of Cooperation may consider introducing a suitable Capital / Credit Insurance Scheme for Cooperative Societies especially for the MSCS to protect financial interests of all stakeholders of Cooperative Societies specifically for depositors Members of MSCSs at the earliest.
On the subject related to Management of Multi State Cooperative Societies, the committee report added, “The Committee notes that as on date there are about 1481 registered Multi State Co-operative Societies (MSCS) in the country and 83 of them including five Cooperative Banks are under liquidation”.
“The liquidation proceedings are time consuming due to legal proceedings in various courts of laws and other tribunals / forums, involvement of multiple Law Enforcement Agencies, multitude of stakeholders like depositors, employees, members, etc”.
It bears recall that the committee on Agriculture, Animal Husbandry and Food Processing submitted its report on Demand for Grants pertaining to the Ministry of Cooperation in Lok Sabha on 13th March 2023 and Laid on the table of Rajya Sabha on 14th March 2023.
