Chief Minister Shivraj Singh Chouhan has said that strict action should be taken against officers of cooperative banks distributing loans to ineligible persons and committing other financial irregularities and to send them to jail.
Reviewing cooperative credit structure at Mantralaya here on Saturday, the Chief Minister said that no mismanagement will be tolerated in district cooperative banks. It was informed during the review that immediate steps need to be taken to improve fiscal management in 8 banks including Datia, Morena, Gwalior, Jabalpur, Rajgarh, Raisen, Sidhi and Guna.
The Chief Minister said that functioning of cooperative banks must be strictly watched. Stressing the need for strict action to maintain loan distribution, he said that any financial irregularity will not be tolerated and strict action will be taken against concerning members. He said that loan recoveries by cooperative banks also need to be improved immediately so that farmers can get maximum loan facility. The more the recoveries, the more benefit to farmers, he added.
The Chief Minister directed that maximum possible efforts should be made to improve situation of district cooperative banks. For this, he directed to evolve a justifiable recovery action plan so that it is done easily. Directing to make functioning of primary agriculture cooperative credit societies fully digital, the Chief Minister said that this will facilitate reviewing functioning and detecting irregularities. He said that condition of cooperative banks where elections have been held should be improved and their members as well as Chairpersons should be informed about reformatory steps.
The meeting also discussed proposed amendments to MP Cooperative Societies Act 1960. The proposed amendments include appointment of administrator in place of board of directors and holding elections within maximum one year, vesting powers to Registrar for maintaining cadre for appointment of CEOs of primary agriculture credit cooperative societies and district cooperative banks, abolishing condition of taking permission of Reserve Bank of India before removing board of directors, appointment of auditors by Registrar and tabling in Vidhan Sabha the audits of only those cooperative societies whose turnover exceeds Rs500 crore.