"The time has come to enact more stringent laws (to check frauds in credit societies). These white-collar frauds should be tackled more seriously and culprits should not be allowed to go scot-free", Co-operative Minister Harshavardhan Patil said here today.
The Government would make amendments into the current laws with the help of Home department to deal with the issue, he said.
The Minister's statement comes in the wake of arrest of Suresh Borole, a relative of Maharashtra Assembly Opposition leader Eknath Khadse, in a case of alleged misappropriation in Jalgaon-based Tapi Co-operative Credit Society.
Five per cent of the nearly 21,000 credit societies in the state are in the defaulters' list, Patil said.
"We are contemplating debarring directors (of scam tainted societies) to hold the same post in another credit society for a period of six years", Patil said.
A committee in this regard, chaired by Commissioner of the Co-operatives, has been formed, the Minister added.
He said properties of the directors involved in scam should be attached as it will help in recovering the financial loss suffered by depositors.
Patil said his Ministry is contemplating conducting audits of the credit societies by Government auditors.
To support this move, he pointed out that Pen Urban Co-operative Bank had faced a massive loss of Rs 800 crore as it had appointed private auditors.
