Law amended to empower govt to appoint administrator, board for coop banks in JK

The State Administrative Council (SAC) Monday amended Cooperative Societies Act (CSA) to pave the way for appointment of administrators, professional boards for cooperative banks by the state government.

The State Administrative Council (SAC) headed by Governor Satya Pal Malik approved amendments to the Jammu and Kashmir Cooperative Societies Act, 1989.

The Bill seeks to replace the J&K Cooperative Societies (Amendment) Ordinance, 2018 promulgated by the governor on June 14 this year, an official spokesman said.

The amendments will enable the government to constitute a board of management or administrator for a period of 2 years to manage the affairs of cooperative banks instead of six months as contained in the earlier legislation.

The amendment will also help to implement the various revival packages of central and the state governments for such Banks, he said.

It will also enable the government constitution of professional boards for three district central cooperative banks (DCCBs) in Jammu, Baramulla and Anantnag Central Cooperative Banks for management of their affairs and judiciously use the recapitalisation amount of Rs 366.71 crore for attaining and maintaining a capital to Risk Assets Ratio (CRAR) of 9 per cent.

Presently, there is no provision in the Jammu and Kashmir Cooperative Societies Act, 1989, for the appointment of board of management or administrator to manage the affairs of any society beyond the period of six months and also to appoint the members of professional boards as may be necessary to manage the affairs of the DCCBs, the spokesman said.

In another decision, the SAC approved the Jammu and Kashmir Self-Reliant Cooperative Bill, 2018.

The bill seeks to regulate the activities of the self-reliant cooperatives and protect the interests of themembers and depositors.

Also, it has been noticed that some societies indulge in banking activities without the permission of regulatory authority and have duped the depositors and membersof their hard-earned money worth crores.

New sections are being inserted to not only simplify the procedures but also provide aid to attain the objectives of self-reliant cooperatives without any encumbrances, spokesman said.