Gehlot writes to PM Modi to rein in multi-state cooperative societies

Chief Minister Ashok Gehlot has written to Prime Minister Narendra Modi for enacting provisions for remedial measures against the multi-state cooperative societies under the Centre's administration.

The chief minister wrote to the prime minister following Rajasthan police alone receiving complaints of around 73,000 investors alleging irregularities in investments worth nearly Rs 1420 crore by the multi-state cooperative societies.

In his letter to Modi, Gehlot said a large number of common people have invested in multi-state cooperative societies.

In Rajasthan alone, complaints from around 73,000 investors over alleged irregularities worth over Rs 1419.77 crore have been received.

"As multi-state cooperative societies are under the administrative control of the Government of India, Prime Minister Narendra Modi ji should take remedial measures by directing the Central Registrar to authorise state's cooperative departments to take action in the matter in order to save the interests of common people," Gehlot said in a statement.

He said the Centre has recently amended the provisions of the Banking Regulation Act which are against the basic principles of cooperatives and will harm the functioning of the state cooperative banks.

The chief minister, in his letter to the PM, said these amendments should be withdrawn, the statement said.

Under the new provisions, all administrative control of the co-operative banks has been given to the RBI.

As a result, the administrative control of the co-operative banks under the state government will go to the RBI, which is an encroachment on the principle of co-operatives, Gehlot said.

He said under the amended provisions, the principle of one-member-one-vote does not hold any longer. The previous structure and provisions must be restored in the interest of cooperatives, he said.