Panel suggests decontrol of co-operative societies

A three-member committee, constituted by the state government, has recommended absolute decontrol of the cooperative sector to promote its growth.

The panel, headed by B S Vishwanath, on Monday submitted its report to chief minister H D Kumaraswamy here. It has suggested comprehensive amendments to the existing Cooperative Act.

Former law minister M C Nanaiah, who was a member of the panel, told Business Standard that the cooperative movement had lost its importance after government exerted control over the sector.

"The government has the power to nominate three of its members on cooperative societies where it has subscribed to the share capital. This in an indirect way of bringing the cooperative societies under government control. This has only resulted in negative growth. We want to do away with this system," he added.

He pointed out that successive governments had developed the tendency to nominate the workers of the party in power to the cooperative societies.

"It did not matter to them if the cooperative societies were making losses. All they wanted was a nomination at the cost of the society. There was absolutely no scope for the society to grow financially or otherwise," he contended.

There are nearly 30,000 registered cooperative societies in the state with 1.57 crore members. "All these persons have made substantial investments in the societies. The government has to address their concerns. The first step in reforming the cooperative movement is removing government nominations," he stated.

The panel was formed a year ago by the erstwhile JD(S)-Congress coalition government. "We have sought the implementation of all the recommendations. The chief minister has responded in a positive manner," Nanaiah said.