Minister for Cooperation S.T. Somashekhar has said that while a majority of the Souharda cooperative societies are doing a good job, bankruptcy of a few societies is bringing a bad name to the whole sector and so steps are being taken to check such developments.
Inaugurating the new building of the Belagavi regional office of Karnataka State Souharda Federal Cooperative Limited at Auto Nagar in Belagavi on Wednesday, Mr. Somashekhar said that there are 5,400 Souharda Composite Cooperative Societies functioning in the State and a majority are doing a good job.
The Minister said that steps are being taken to ensure that depositors get back their money from the same point where they deposited it. Special officers have been appointed to prevent bankruptcy of societies and action will be taken immediately at the slightest indication of bankruptcy, he said.
Clarifying that there will be no interference from the State Government in the functioning of these cooperatives, he urged cooperative leaders to take all into confidence and not indulge in any politics.
Taking exception to the difference in recovery methods applied to common people and factories, Mr. Somashekhar sought to know why the cooperatives do not publicise pending loans of factories like they do in the case of individuals if they failed to repay for three months. He asked the cooperatives to change their style of functioning and apply the same yardstick to all.
Chairman of KLE Society and former Rajya Sabha member Prabhakar Kore said that it is only in Belagavi district that the cooperative movement has not only survived but is also prospering. The district has the highest number of Souharda cooperative societies in the State, he said.
Member of Legislative Assembly Anil Benake urged the Minister to take steps to return the deposits made by the common people in cooperative societies that have gone bankrupt. The former MLC Mahanthesh Kavatagimath asked the cooperative societies to act as keepers of public money and do it as a service.
On the occasion, Mr. Somashekhar virtually inaugurated the Kalaburagi regional office also.
