JAMMU, DECEMBER 17: 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 Hon’ble Governor on 14.06.2018.
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. It will also enable the Government constitution of Professional Boards for three District Central Cooperative Banks (DCCBs) viz; Jammu, Baramulla and Anantnag Central Cooperative Banks for management of their affairs and judiciously use the recapitalization amount of Rs 366.71 Crore for attaining and maintaining a Capital to Risk Assets Ratio (CRAR) of 9%.
Presently, there is no provision in the Jammu and Kashmir Cooperative Societies Act, 1989, for 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.
State Administrative Council also 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 the members/depositors. Also, it has been noticed that some societies indulge in banking activities without the permission of regulatory authority and have duped the depositors/members of their hard-earned money worth crores.
There is no provision in the Jammu and Kashmir Self-Reliant Cooperative Act, 1999 under which the Registrar can cancel the registration of the society which exists for illegal purpose, taking undue advantage of deposits or continues business beyond the purview of law. 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.
