The central government is steadfast in its commitment to eliminating fraud in cooperative societies, ensuring that no wrongdoer, regardless of political affiliation, escapes accountability. Minister of State for Cooperation Krishan Pal emphasized this stance during a discussion in the Rajya Sabha today.
Stringent Action Against Frauds
Responding to supplementary questions during the Question Hour, the minister outlined the government’s efforts to curb fraud in multi-state cooperative societies. “Fraudsters, whether affiliated with the ruling party or the opposition, big or small, will not be spared,” he asserted. Highlighting the government’s determination, he stated that multiple measures have been introduced since the Ministry of Cooperation was established.
Opposition Questions Transparency
Congress MP Shaktisinh Gohil questioned the status of investigations into cooperative societies under liquidation, particularly regarding fraud cases involving the Central Bureau of Investigation (CBI). He also sought clarity on whether political considerations were hindering action against offenders.
In response, the minister stated that CBI investigations would not be initiated based on political or personal requests but assured that appropriate actions were being taken. Dissatisfied with the reply, Leader of Opposition Mallikarjun Kharge criticized the lack of specific answers about the number of ongoing investigations and liquidations.
Focus on Strengthening Cooperative Governance
Minister Krishan Pal elaborated on measures to address fraudulent practices and mismanagement in multi-state cooperative societies. Key initiatives include:
- Concurrent audits to detect fraud promptly.
- Establishment of the Sahkari Nirvachan Pardhikaran (Cooperative Election Authority).
- Appointment of cooperative ombudsmen and information officers.
- Creation of an auditors’ panel by the Comptroller and Auditor General (CAG).
- Fixing quorum requirements for meetings.
Since the Ministry’s inception, 54 initiatives have been implemented to enhance transparency, governance, and accountability in the cooperative sector. These reforms aim to protect the interests of society members and depositors while fostering the growth of cooperatives.
Challenges in Liquidation and Progress Achieved
Responding to YSR Congress Party MP Gola Babu Rao’s query on liquidation, the minister revealed that 100 of 1,702 multi-state cooperative societies are currently non-functional and undergoing liquidation. Seven banks operated by such societies are also in liquidation due to scams and bad loan ratios.
He acknowledged the complexity of the liquidation process, involving court proceedings and multiple agencies, which can lead to delays. However, efforts are underway to expedite the process and safeguard the interests of members and depositors.
Growth in Cooperative Sector
Despite challenges, the Ministry has facilitated the formation of 256 new multi-state cooperative societies, contributing to the sector’s expansion and its role in socio-economic development.
The government’s approach reflects a zero-tolerance policy towards fraud and a focus on strengthening cooperative societies as pillars of economic and social growth.
