Cooperation Minister V.N. Vasavan has expressed concern over the growing influence of Multi-State Cooperative Societies (MSCS) that could eat into the revenue share of cooperative societies in Kerala.
Currently, 38 registered MSCS are headquartered in the State. The branches of 68 MSCS based in other States also function in Kerala. In all, nearly 180 branches of such entities operated in the State.
Responding to questions in the Assembly on Thursday, Mr. Vasavan said the emergence of MSCSs, which have been permitted by law to offer high interest rates for fixed rates without adhering to the rates fixed by the Registrar of Cooperative Societies, has began to affect primary agricultural cooperative societies through unhealthy competition.
He added that there were no complaints redressal mechanism at the State-level since such cooperative societies do not come under the ambit of the Kerala Cooperative Deposit Guarantee Scheme. Besides, such entities also do not cooperate with inspections conducted by the State despite the Section 108 of the Multi-State Cooperative Societies Act permitting such steps. Moreover, while the State cooperatives audit norms were not applicable for MSCSs, these societies usually conduct audits using chartered accountants or auditors appointed from a panel of auditors approved by the Central Registrar.
