Panaji: Discovering irregularities in the functioning of Mashel Mahila Co-operative Credit Society Ltd, Deulwada, Marcel, the state Registrar of Co-operative Societies, has prohibited the credit society from accepting deposits above Rs 5,000 per person per month and also disbursing any loans or advances.
The Registrar has placed the cooperative credit society under restrictions for a period of six months for non-compliance with statutory requirements and failure to safeguard depositor interests.
Vide a restriction order signed by Vikas Gaunekar, Registrar, the credit society is banned from further collection of pigmy accounts and opening of fresh accounts, such as saving, current, recurring, fixed deposit etc.
The restriction order reveals that, Mashel Mahila Credit Society, mobilised deposits worth Rs 9.08 crore as on March 31, 2019. However the credit society maintained liquidity of only 2.65 per cent as against the prescribed norm of 25 per cent (20 per cent of investment and 5 per cent CRR.)
Other financial irregularities observed in the credit society are, casual attitude towards recovery of loans resulting therein huge over dues and NPA beyond permissible limit. The irregularities also include failure of the society in maintaining the required documents while sanctioning loans to its members.
Moreover the society also failed to comply with the requirements of Section 72 of the Goa Co-operative Societies Act, 2001, and deprived its general members of their legitimate right to attend the shareholders meeting and participate in the business of the society.
“The society is sanctioning loans without obtaining the required mandatory documents to safeguard the interest of the society. If the present situation is allowed to continue further, it may encourage the management to continue with the irregularities as pointed out hereinabove and further deteriorate the financial base to an irreparable extent,” says the restriction order imposed on May 19.
It says that, the assistant registrar of co-operative societies, Ponda, will monitor and review the progress of the society on weekly basis so as to ensure that the directives are strictly complied with and submit the compliance report to the state registrar.
“In case the society shows improvement and compliance, these restrictions will not be extended further. The financial position shall be assessed on the basis of the report submitted by the assistant registrar, Ponda zone and accordingly the decision whether to relax the above restrictions or otherwise will be taken,” says the order.