The Maharashtra government is seeking to amend the Cooperative Societies Act, 1960, to ensure that liquidation proceedings are completed within two years. For this purpose, it is likely to issue an Ordinance.
Under the existing provisions of the Act, liquidation proceedings initiated against state enterprises that default on loan repayments (both principal and interest) take up to a decade before financial institutions realise their dues.
The amendments include a provision for the appointment of a board of liquidators (each being at least an additional registrar) in place of the single liquidator appointed under the existing law.
The Ordinance seeks to allow state government officials of the rank of secretary to hear appeals of the recovery proceedings.
