Societies involved in multi-crore fraud, says CM; experts asked to recommend amendments
PANAJI
Amidst ongoing jobs-for-cash and cash-for-land scam, the Chief Minister Pramod Sawant on Wednesday highlighted one of the biggest scam revolving around the Co-operative credit societies, with growing irregularities resulting in multi-crore fraud.
Addressing the closing ceremony of 71st National Co-operative Week, Sawant said that the innocent depositors cum investors are defrauded by the societies, with the government having limited powers to act upon while advocating for stricter regulations to bring transparency and accountability.
He appealed experts from the co-operative sector to study the Acts from other States and recommend necessary amendments to tighten the scope of the State Act.
“We have already amended the Co-operative Act but considering the escalating irregularities, there is need for further amendment to tighten the scope,” Sawant said.
“The co-operative credit societies are involved in one of the biggest scam. This scam runs into multi-crore. They are defrauding depositors and investors to the tune of crores of rupees. Past few years, we have seen several unknown credit societies mushrooming and people are investing into it. These are involved in duping depositors to Rs 10-20 crore. Ultimately, the common man is suffering,” the chief minister lamented.
Stating that the government has got limited powers to act, Sawant said, “we can only initiate inquiry…we need to see that the Chairman…Board of Directors…are booked ... we have seen that loans are given beyond their permissible limit…this is something very serious”.
“As we celebrate the co-operative week, let us take a pledge to see that the common man is not duped or does not suffer due to us... I also appeal to people not to invest in unknown credit societies irrespective of whatever monetary benefits they promise,” he added.
Sawant also urged cooperative societies to ensure that loans primarily benefit farmers. He outlined a subsidy model where 90 per cent of the amount is subsidised by the government and 10 per cent is provided as a loan by the banks.
Stating that subsidies are sanctioned within six months, Sawant criticised the practice of asking farmers for security documents. He instructed banks that once the sanctioned amount comes into the loan account, banks can deduct it from there.
