Web:
www.lrdjournal.com;
Email: journal1257@gmail.com
Legal
Provisions Regarding Registration of Credit Co-Operative Societies in Current
Situation
*Poojaben Parmar
Abstract:-
Co-operation
is just one aspect of a broader activity that encourages voluntary associations
of people with similar needs - co-operative activity is started, no work is
possible without the co-operative principles - seven principles of co-operation
- The main objective of the co-operative activity is to help the middle class
people - registrar may register or refuse to register such society - Which
societies can be registered? - The conditions for registration of a
co-operative society depend on the type of society to be registered - When to
Refuse Registration? - The Registrar keeps the registration form of all the
congregations registered under the Act in the prescribed form – Certificate of
registration signed by the Registrar is conclusive proof that the registration
of the congregation has been done properly - Conclusion.
Key
Word: Credit Co-operative Society – Principles – Object –
Legal Provisions of Registration – Implement of Rules & Regulations.
Introduction:-
Whenever the first word
co-operation is mentioned, it clearly states that work done together. India is
a country made up of villages. Most of
India consists of small villages. About
60 to 70% of the people in India are middle class people. Those people get along with each other doing
economic activity. This is an activity
in which more than one person gets together and forms a co-operative activity.
These people get together to raise funds and establish co-operatives. That is
why it is said "without co-operation there is no salvation".(1)
Late Shri Vaikunthabhai
L. Mehta According to him, "Co-operation is just one aspect of a broader
activity that encourages voluntary associations of people with similar needs
(congregations) who collect and integrate their resources to meet or achieve
their similar needs" and middle
class people are made members. The task of collecting deposits, daily savings
and monthly savings from the members is done for the purpose of increasing the
financial savings among the members. The funds that are raised are lent at a
low interest rate to any member who needs money from the fund. The borrower
member has to pay the monthly installment, that’s why it’s called as Credit
Co-operative Society”.
Co-operative
Principles:-(2)
Whenever a co-operative
activity is started or an operation is started, no work is possible without the
co-operative principles. Just as there are seven colours of the rainbow, so
there are seven principles of co-operation, which are included as basic
principles. It is fully explained by these seven principles that everything
including operations, management, membership, rule and awareness are included.
1.
Voluntary
and open membership position:
This principle was
first formulated in 1966, and then it has been amended and modified in
1995. This principle means that no
person can or should be forced to become a member of a co-operative society. Their
membership should be based on the member's own active, responsible, clear
understanding and acceptance of co-operative values and principles. When the membership is open i.e. at any time
in the congregation one can join as a member at any time. The person can avail
the services provided by the congregation as a member. The important idea and
concept here is that co-operatives cannot discriminate against potential
members on the basis of their own characteristics, social (racial, diplomatic,
religious or gender discrimination) or inheritance.
1.
Democratic
Control of Members:
This rule is based on
the principle of open and voluntary membership. "Members are involved in
formulating policy, rules and directing the activities of the co-operative
society. Members are guided in such a way that no member has a higher or more
important right than any other member, but everyone is given equal rights. This
principle is closely linked to the principle of "one member - one vote"
since the 1966 Amendment. Attempts have been made by this principle to
formulate different rational methods for it.
2.
Member
Economic Participation:
In today's age of
modern and large-scale globalization, sufficient capital means of co-operatives
to survive in competition with businesses, industries etc. With the extremely
difficult question of consolidating and strengthening the capital base by
raising funds, this principle is requested to make a direct effort. Throughout
its history, co-operatives have been formed on that ideology. Capital in a
congregation is not the sole owner of a co-operative venture. But capital in
the congregation is only a tool, not an assessment.
Co-operative activities
are carried out to cater to the needs of the members and not to raise capital
in the hands of investors. This principle provides a guiding framework for the
potential use of surplus extra money, profits received by the co-operative
venture. The special thing about this theory is that it is designed to provide
benefits to the community rather than individual benefits.
3.
Autonomy
and Independence:
Within thirty (30)
years after the passage of the 1966 Co-operative Principles, co-operative
activity has been used by many different countries since World War III as a
deliberate part of their social and economic development strategy. There are
many examples of successful development and progress through co-operatives. Despite
the intention to develop member controlled self-governing co-operative
societies and enterprises, the government needs encouragement & support in
initiating co-operative activities. The principle of autonomy and independence
emphasizes that co-operatives should be free from the interference of the
government or other powerful agencies so that ultimately the members of the
co-operatives may be empowered to regulate their own future.
4.
Education,
Training and Information:
Co-operative Identity
In the new statement, co-operative education has taken precedence in
co-operative activity. In the role of principles of co-operation, co-operative
education is given more importance than advertisement of products or
distribution of information. It keeps members, elected leaders, office bearers,
managers as well as employees fully engaged in fully understanding the
co-operative ideology, the complexity and richness of the tasks. In short,
co-operative principles reveal the characteristics and benefits of co-operatives
to the youth and today's young generation about them. Active work can be done
through training and education about co-operation.
5.
Cooperation
between Co-operative Societies:
This principle of
co-operation is a newly added principle in the list of principles.
International co-operative Alliance was first introduced in the 1966 Congress.
The co-operative and was later ratified
and formed in the later years of 1800 AD and the issue of the first set
of co-operative principles was framed in the 1937 Congress. All types of
co-operatives should co-operate with other co-operatives at the local, national
and international levels as much as possible in practical terms to protect and
achieve the interests of their members. This co-operation helps in furthering
the mutual interests of the societies.
Publishes articles on
important co-operative topics in newspapers. Regional conventions are held to
discuss and consider questions of co-operative activity. So that mass learning and information can be
gained.
6.
Responsibility
to society:
Based on the values
of social responsibility and responsibility to others, this co-operative
principle based on the values of social and environmental responsibility
gives impetus and strength to the co-operative interest in building a better
society and making special contribution. According to this principle, a person
thinks of protecting the needs and interests of all equal people instead of
thinking only of his own performance or interests.
The
co-operative members have a clear understanding that making provision for any
member is equivalent to making provision for all members.
Objectives
of Co-operative Societies:(3)
Ø
To maintain the
economic interests of the members as well as to promote and encourage welfare
activities for the common people.
Ø
To protect the
interests of congregation members or the public.
Ø
Adhere to co-operative
principles and maintain the coherence of co-operative laws.
Ø
The main objective of
the co-operative activity is to help the middle class people. The spirit of co-operation should be
maintained among the people and the spirit of saving should be cultivated among
the people.
Ø
When the members of the
society collectively agree to carry out activities on matters of co-operation
explicitly with the members in view of the co-operative principles,
registration is done by the concerned authorities keeping in view the
provisions of Co-operative Societies Act 1963.
Ø
All types of societies
show their willingness to work under the principles and rules of co-operation,
but the economic activities of the members may be different, such as: service
society for farm credit, staff society for employee credit, civic society for
citizens and consumer credit society for the needs of the customers.
Ø
The Co-operative Act
and its provisions apply to all types of co-operative societies, but the
by-laws and objectives of all these types of co-operatives are different as
their activities are different.
Powers
of Registrar:(4)
Administrative
structures for registration of congregations are provided. One Registrar of
Co-operative Societies has been appointed by the State Government for each
district. When the registration of a society is not likely to be financially
viable or whose registration is likely to have any adverse effect on the
co-operative activity, the registrar may refuse to register such society.
If no condition for
registration is fulfilled, the proposed co-operative society may register or refuse
registration. Classification and modification of a congregation, change of
classification, after classification, and the congregation may be allowed to
carry out activities related to other class congregations.
May refuse to register
the bylaws of the congregation or if there is any objection to it, may also
order the congregation to amend its bylaws.
While the managing committee may hear appeals
against the decision made by the managing committee regarding the admission of
a member and make orders accordingly keeping in view the information of those
matters.
As well as accepting,
approving or rejecting the general meeting's proposals to remove or bankrupt
any member. Forcing any congregation or their officers to perform certain
duties has the power to penalize them if they fail to comply with the order.
Also the managing
committee of the congregation has the power to supersede the committee i.e. to
remove or remove any of its members or to appoint a new committee or to appoint
an administrator in its place for a limited period of time.
In some cases the
congregation has the power to seize and confiscate the files of the
congregation and to seize the cash as well as other assets of the congregation.
Which
societies can be registered?(5):
Any society which is
established for the purpose of promoting the economic interests of its members
or the general welfare of the people in accordance with the principles of
co-operative society can be registered under section 4 of the Act.
But when in the opinion
of the Registrar it is felt that the congregation is financially unstable or
its registration may adversely affect any other congregation, it will not be
able to register. The society cannot be registered even if it is against the
public policy or its activities are against the public policy.
In short, the
congregations to be registered must first offal to the principles of co-operation
operate in accordance with the bylaws, not to be harmed or obstructed in any
other way, and to maintain the financial interest of the members of the
congregation.
Congregations that need
to register have to register with the NOC. There is no objection after it is
obtained. Normally you have to get No Objection Certificate from 10
congregations. They do not mind if a new congregation is formed. The new
congregation is usually 2 to 3 km away from any other type of congregation.
Should be at a distance of no, so as not to cause any inconvenience or trouble
to other congregations.
Terms
of registration:(6)
The conditions for
registration of a co-operative society depend on the type of society to be
registered. For the registration of a
congregation other than a federal one, a fixed number of persons, each of whom
belongs to a different family, remain a necessity and requirement to form a
congregation.
Normally and the
Registrar specifies the minimum number of persons for this purpose. People who
are affiliated with the congregation must reside in the working area of the
congregation and be eligible to become members, i.e. be able to enter into
contracts under the Indian Contracts Act, 1872.
As long as all the
persons who intend to form a congregation must live in the same town, city or
village or group of villages. According to the part of the congregation, the
word 'limited' or 'unlimited' should be mentioned behind the name of the
congregation.
The application for
registration of the Federal Co-operative Society submitted with Authorization
of the signatory along with rights and membership. Resolutions consistent with
the co-operative bylaws should be included.
It should be aimed at
promoting the economic interests or general welfare of the members or the
public. Which is consistent with the principles of co-operatives or should
facilitate the functioning of any other co-operative societies in accordance
with the provisions of the relevant Act.
When the registration
of a co-operative society is proposed for the purpose of merging two existing
co-operative societies or when a registration requirement arises due to the
division of an existing society, the procedure decided for it should be
followed and followed.
Application
for Registration:(7)
Normally an application
for registration of a co-operative society has to be submitted by the main sponsor
to the registration in the prescribed form. Such application form should be
consistent with the rules of the concerned state co-operative societies. The
application for registration needs to be submitted along with the required
documents and coins should also be affixed on it. Tickets of the required value
should be affixed and in some states a registration fee is also payable.
All the state
registrars have printed and published 3 copies of the bylaws of the proposed
co-operative society properly signed by the sponsors as well as model bylaws
for important types of co-operative societies.
Police NOC of 11
sponsors of the proposed congregation, to present the latest original. To
submit a joint affidavit with photos of 11 sponsors, full address of residence
and details with signature regarding the fact that 11 sponsors of the proposed
society are not involved in lending activities. (Submit a notarized statement
that sponsors and family members do not engage in or engage in lending
activities in the city or Ruda area).
The form showing the
details of the business/business representation of the sponsors of the proposed
society shall be computerized along with the basis as per the instructions
given in the prescribed specimen form attached herewith. (Form No. 2).
A copy of PAN card of
all the members attached to the proposed congregation should be submitted. In
case of non-availability of PAN card, a copy of the online application form has
to be submitted to get the PAN card.
A copy of the income
tax return of the last three years of the main sponsor has to be
submitted. As well as other sponsors
will have to submit a copy of last year's income tax return or letter of
guarantee. Notarized lease agreement or consent form will have to be submitted
as the basis for the address given in the registration application form of the
proposed society.
The main sponsor should
verify from the list of societies of this office that the name of the proposed
congregation is not registered with any other congregation of the same name as
he wants to have, and not to have a mixed name. Decide on the name only after
verifying this otherwise the registration proposal will be returned.
The sponsors forming
the proposed society should select those who are experienced in the field of business
employment, financially competent and can carry the financial responsibility of
the society as well as those who have basic knowledge of co-operative
activities.
A
list of persons who have contributed to the share capital, including all
sponsors, details of the fixed assets proposed to receive the registration of
the proposed congregation.
Certificate obtained
from the bank showing the balance deposited in the name of the proposed
co-operative society, as well as financial statements, statements showing if
any initial or preliminary expenses have been incurred in preparing the
proposal for registration and proceedings of the meetings of the sponsors.
NOC obtained from
officers and certificates from sponsors as well as outsiders or congregations. Other documents requested by the Registrar to
be satisfied with the proposal. Documents in respect of which they are
satisfied that all the necessary conditions have been fulfilled by the proposed
congregation. The federal congregation model must be signed by at least 10
congregations (8).
Letters
of Commitment from the Chief Sponsor of the proposed congregation:
Ø
Project Finance,
Hypothecation, Overdraft, Cash Credit will not be lent; deposit of non-members
will not be taken.
Ø
The recommendations of the
Finance Action Task Force will be followed.
Ø
Planning and investment
will be made as per the instructions of the Central Bank, District Registrar as
per the by-laws to secure the deposits.
Ø
A minimum of Rs.
1,00,000 /- (one lakh) and the number of members has to be 100.
When
to Deny Registration?:
When the Registrar
feels that the requirements for registration of a congregation have been
complied with but are not in accordance with the bylaws, laws and regulations
of the congregation, then the registrar may temporarily register or deny registration
of the congregation. As well as to the Registrar as he deems fit in accordance
with the bylaws of the congregation, the law and its rules. But the congregation may refuse to register
if the registration requirements are not met.
When the Registrar
refuses to register the congregation, he should immediately inform the person
who first signed the application of his own decision, along with his reasons.
However no time limit has been fixed in this regard. An appeal against the
Registrar's refusal to register a society can be appealed to the State
Government within two months.(9) There is also a provision
for revision under section 153.
Certificate
of Registration:(10)
The Registrar keeps the
registration form of all the congregations registered under the Act in the
prescribed form, a copy of which is kept in a copy of the registration form of
each congregation. As per Section 10 and Rule 4, the Registrar has to keep the
registration form of all the societies registered or deemed registered under
this Act. Such registration form is to be kept as per Form B.
Important
Judgments:
Ø The
administrative structure for registration of a society is provided, a Registrar
of Co-operative Societies for the whole State is appointed by the State
Government. However, the Registrar is not the head of the co-operative society
and therefore cannot interfere in the day-to-day work of the society(11).
Ø The
powers of the Registrar may be vested in the Deputy Registrar under any section
of the Act and may also be exercised under the newly added sub-sections when
the section is amended by adding some new sub-sections.(12)
Ø By
the bylaws of the Society, the Joint Registrar may exercise the powers vested
in the Registrar under the bylaws of the Society when certain powers have been
delegated to the Registrar and the powers of the Registrar under the State
Government have been delegated to the Joint Registrar.(13)
Ø Certificate
of registration signed by the Registrar is conclusive proof that the registration
of the congregation has been done properly. But the other party can prove that
the registration was later revoked in the same way that the conclusive evidence
is in a true certificate relationship. The rule of conclusive evidence does not
apply to a false or forged certificate. Any party can prove that the
registration certificate is false and forged. There is no impediment under this
section to prove that the registration certificate is false and forged.(14)
Conclusion:
In today's modern age,
competitions against Credit co-operative Societies (congregations) are on the
rise. The competition has pitted private banks, finance companies and the
corporate sector against each other. Against which one has to constantly
struggle to survive. Private banks offer all kinds of services sitting at home
against Credit co-operative Societies (congregations). Consumers are attracted
by attract schemes. Savings accounts are opened to customers sitting at home
and operations are completed in fewer documents.
The sophisticated age
has now come to the online and computer age, in which more performance can be
achieved with less effort. In the corporate sector, their employees are
academically qualified and trained. It does not involve any kind of influence
or affiliation. Due to which the possibility of any kind of scams or fraud is
less or negligible.
Since people from
directors to staff of private banks work in the same sector, they can give them
full time. The biggest question in
Credit co-operative Society (congregation) is whether the office bearers of the
organization are affiliated with more than one organization. Nepotism and
political interference in Credit co-operative Society (congregation) enter into
it.
Casteism and nepotism
are contamination in Credit co-operative Societies (congregations), which
prevents the recruitment of academically qualified employees and the
organization does not get good employees, due to the above reasons it becomes
impossible to sustain the organization and the congregation cannot longer
function well.
Basic knowledge in
Credit co-operative Society (congregation) i.e. knowledge about co-operation is
very scarce people and most people do not have co-operative knowledge. They are
ignorant of the basic principles and rules of co-operation, which is why they
fail to carry out co-operative activity.
The influence or
nepotism employee has no knowledge of any kind of co-operative law and due to
his lack of knowledge he comes across big mistakes and scams from small
mistakes. A sense of saving is created in the people and a fixed interest is
reimbursed on the amount of these savings.
Credit co-operative
Societies (congregations) are formed for the auspicious purpose of providing
loan facility for financial protection in times of need and in accordance with
the spirit of co-operation and its principles. In which people from different
sectors become members by paying share and entry fee. Out of these members 11 to 21 sponsors are
registered under the Co-operative Societies Act in the District Registrar's
Office as per the registration process.
The registered members
of this society deposit a deposit fee, in addition to the entrance fee. Some
credit co-operative societies get membership of District Central Co-operative
Bank. If they get cash credit facility from this bank, they get credit
facility. Members can deposit the mandatory savings amount in the congregation
on a regular basis. From these accumulated funds, loans are provided to the
members within the approved limits as required. In which monthly installments
are regularly deposited by the members in the congregation.
It is especially
important for creditworthy co-operatives to be honest and not compromise in any
way. If the members of the managing committee are recruited, it should be done
in accordance with the bylaws. An employee with training and knowledge should
be appointed in the organization. So that it is the turn of the organization to
face further loss or damage.
The most important
contribution in the management of Credit co-operative Society (congregation)
depends on the responsibility of the manager and chairman of the organization,
because when any kind of decision is to be taken, it is followed and imitated
after being placed in the committee.
Particular vigilance
should be exercised on how to increase the funds of the Society and ensure
satisfactory performance of the members. As chairman of the congregation, the
congregation's credit must be seen to be fair and true. It should be seen that the recovery takes
place within the time limit.
Customers and members
should be guided by the staff to ensure that the services of the congregation
are satisfactory and care should be taken to ensure that the office is
functioning regularly. The credit given to the members in the organization
should be given impartially; it should not include any kind of recommendation
or nepotism. Special care should be taken not to give any kind of lure or
enticement scheme to the members.
The organization should
recruit knowledgeable and trained staff of co-operative law. Kindness of any kind should not enter so as
not to harm the organization in any way.
Employees of the organization should be sent to co-operative trainings
and seminars to keep abreast of the amendments made in the law.
As far as possible, the
committee member should not be affiliated with any other organization. The
managing committee manages the day-to-day work of the congregation. The
management of a co-operative society includes the services and duties of the
members of the society, office bearers, officers and employees.
The members of any
organization also expect that the organization of which they are a member is
administered with honesty and transparency. The members of the committee should
also have complete knowledge about the administration of the organization, the
complete and correct information about the administration should be presented
to the members in the general meeting. If such an operation is carried out, the
confidence of the members in the co-operative sector can be maintained.
The co-operative sector
has to come up with a special policy on customer relationship management and
adopt customer related management to achieve maximum customer satisfaction.
Only then will the congregation be able to withstand this competition, retain
customers, increase customers and make an overall profit, giving good returns
to its members.
References:-
1. Co-operative
(Published by State Co-operative Union).
2. Co-operative
Principles – 1995.
3. As
per Gujarat Co-operative Societies Act – 1961.
4. As
per Gujarat Co-operative Societies Act - 1961 - Section 3.
5. As
per Gujarat Co-operative Societies Act - 1961 - Section 4.
6. As
per Gujarat Co-operative Societies Act - 1961 - Section 6.
7. As
per Gujarat Co-operative Societies Act - 1961 - Section 8.
8. As
per the amendment of the year 2015.
9. As
per Gujarat Co-operative Societies Act - 1961 - Section 153(1).
10. As
per Gujarat Co-operative Societies Act - 1961 - Section 10.
11. A.I.R.
1956 ALL 63.
12. A.I.R.
1958 ALL 330.
13. A.I.R.
1980 M.P. 273.
14. A.I.R.
1962 SC 764.
****************************
){kind=link}
0 Comments