NT Reporter
Panaji
The Union Ministry of Cooperation has said that the accounting and auditing standards for multi-state co-operative credit societies will be determined by the central government to ensure uniformity in the accounting and
auditing processes.
This was told by Union Minister for Cooperation Amit Shah in response to a question raised
by Goa Rajya Sabha MP Sadanand Shet Tanavade in the Parliament during the ongoing
budget session.
The reply by the Union minister is significant in view of the recent episode of Tirumalla Tirupati Multi-State Co-operative Credit Society wherein the Goa government has withdrawn the permission and the no-objection certificate (NOC) granted to the credit society to operate its 13 branches in
the state. The NOC has been withdrawn by the state government over serious and persistent non-compliance by the credit society with statutory requirements and regulatory directions.
The reply tabled by the Union Minister for
Cooperation states that many provisions have been introduced in the Multi-State Co-operative Societies (MSCS) (Amendment) Act and Rules, 2023, to
safeguard the rights of depositors/members and to bring in transparency in the functioning of the multi-state co-operative societies to prevent
financial irregularities.
The minister said that a Cooperative Election Authority has been established to ensure timely, regular and transparent
conduct of elections in multi-state co-operative societies. He said a co-operative ombudsman has been appointed by the central government to provide a mechanism to address grievances
of members.
The Union minister said that a concurrent audit has been introduced for multi-state co-operative societies with
turnover/deposits of more than Rs 500 crore from a panel of auditors approved by the Central Registrar.
He also said that annual reports of multi-state co-operative societies include the board decisions that are not unanimous in order to improve governance and transparency. The minister also said that the central government has determined prudential norms (liquidity, exposure, etc.) for multi-state co-operative societies in the business of thrift and credit.
Shah also said that additional grounds have been provided for disqualification of directors for better recovery of dues and to ensure that acts of omission or commission are not repeated.
He said that provisions for investment of funds by the multi-state co-operative societies have been redefined to ensure safer investment. He also said the Central Registrar can conduct an inquiry if he receives information that business of a multi-state co-operative credit society is being conducted in a fraudulent manner or for unlawful purposes.
As per the Registrar of Co-operative Societies, action was taken by the Goa government against Tirumalla Tirupati Multi-State Co-operative Credit Society
for not submitting the audited financial statements as required under law and for not cooperating with statutory inspection and verification processes.
The credit society in question had also violated the terms and conditions related to the NOC granted apart from failing to respond to or appear before the registrar despite due service of notices.
