Lok Sabha Question No. 3641 (UNSTARRED), answered on 2020-03-16
Subject: Cooperative Society Scams
Ministry: CORPORATE AFFAIRS
Asked by: Diya Kumari

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UN-STARRED QUESTION NO. 3641

ANSWERED ON MONDAY, MARCH 16, 2020/ PHALGUNA 26, 1941 (SAKA)

## COOPERATIVE SOCIETY SCAMS

## QUESTION

3641: MS. DIYA KUMARI:

Will the Minister of CORPORATE AFFAIRS

कॉर्पोरे ट कार्य मंत्री

be pleased to state:

- (a)  whether  the  Government  is  aware  about  the  increasing  Cooperative Societies' Scams in the country, particularly in the State of Rajasthan;
- (b) if so, the details thereof along with the corrective steps taken/being taken by the Government to curb the same;
- (c) whether the Government has established any mechanism to provide relief to the investors of such societies; and

(d) if so, the details thereof?

## ANSWER

THE MINISTER OF STATE FOR

## FINANCE AND CORPORATE AFFAIRS

वित्त एिं कॉर्पोरे ट कार्य मंत्रालर् में राज्य मंत्री

(SHRI ANURAG SINGH THAKUR)

(

श्रीअनुराग व ंह ठाक ु र )

- (a) to (d): The  Government  in  the  Ministry  of Corporate  Affairs  (MCA) administers  the  Companies  Act  and  limited  liability  partnership  (LLP)  Act. Cooperative Societies are not regulated by the MCA and therefore, information is NIL as far as MCA is concerned. Ministry of Agriculture and Farmers Welfare, Department of Agriculture, Cooperation and Farmers Welfare has informed that Cooperative  Societies  is  a  State  subject  under  Entry  32  of  the  State  List  of Seventh  Schedule  of  the  Constitution.  Accordingly,  the  States  have  enacted their own Cooperative Societies Acts for incorporation, regulation and winding up  of  cooperative  societies  within  their  territorial  jurisdiction.  Cooperative Societies with the objects serving the interests of members in more than one State,  the  Parliament  enacted  Multi-State  Cooperative  Societies  Act  (MSCS), 2002. The Multi State Cooperative Societies are registered under the said Act, 2002 and are functioning as autonomous cooperative organizations accountable to their members. The Department of Agriculture, Cooperation and Farmers'  Welfare  in  the  Ministry  of  Agriculture  and  Farmers'  Welfare  is  the administrative Ministry for the same. These societies have to function as per the provisions of the Act & rules made thereunder and their approved bye-laws. Complaints  against  some  of  the  Multi  State  Cooperative  Societies  including from  the  State  of  Rajasthan  have  been  received  from  various  Government agencies as also the general public.  In  case  of  violation  of  provisions  of  the MSCS Act, 2002, action as provided therein, including winding up of defaulter societies  is  taken.  Further,  winding  up  orders  for  9  Multi  State  Cooperative Societies of the State of Rajasthan have been passed and their details are at Annexure-I.

******

## List of Multi State Cooperative Societies Under Liquidation in Rajasthan State

|   S. | N.Name of Society                                                                                                          |
|------|----------------------------------------------------------------------------------------------------------------------------|
|    1 | Bhavishya Credit Cooperative Society Ltd., (301, Mehta Sadan, Durga Nursery Road, Udaipur )                                |
|    2 | ARGOSY Credit Cooperative Society Ltd., (Sengali, Sadar Bazar, Sirohi, Rajasthan )                                         |
|    3 | Apeshwar Credit Cooperative Society Ltd., (Pratiksha height, Opp. Subhashpark, Near Ayurvedic Hospital, Sirohi (Rajasthan) |
|    4 | Shri Kheteshwar Urban Credit Cooperative Society Ltd., (Shahji Ki Badi, Sirohi, Rajasthan )                                |
|    5 | Power Build Home Credit Cooperative Society Ltd. (, 637-B, Bhansali Tower, 4th Floor, Residency Road, Jodhpur, Rajasthan ) |
|    6 | Marwar Urban Credit Cooperative Society Ltd., Choutan Road, Barmer, Rajasthan                                              |
|    7 | Arbuda Credit Cooperative Society Ltd., Mout Abu, Dist. Sirohi, Rajasthan                                                  |
|    8 | Sahyog Credit Cooperative Society Ltd., Mayur Plaza Complex, Palace Road, Sirohi Tehsil and Distt. Sirohi, Rajasthan       |
|    9 | Sundram Credit Cooperative Society Ltd., 18, PWD Colony, Opposite BSNL Office, Sirohi, Rajasthan                           |

*******