The Tamil Nadu Assembly on Friday passed the Bill to further amend the Tamil Nadu Co-operative Societies Act, 1983 to reduce the term of the office of the board of directors of co-operative societies from five years to three years.
The AIADMK led by former Chief Minister Edappadi K. Palaniswami staged a walkout against the Bill. Minister for Co-operation I. Periyasamy, who introduced the Bill, said several complaints had been received from the public and members of the co-operative societies about financial irregularities and frauds in co-operative societies. “A review of the functioning of co-operative societies has revealed large-scale misappropriation of funds, issue of loans on fake jewels and issue of bogus loans of several crores,” he said.
Mr. Periyasamy said the government had decided to reduce the term to three years to protect the interests of co-operative societies, streamline the administration, ensure proper governance and to increase the efficacy of their functioning.
