October 06, 2023 08:27 pm | Updated October 07, 2023 01:24 pm IST – THIRUVANANTHAPURAM
The revival fund proposed as a support mechanism for cooperative societies is to be created by pooling assistance from the State government and “loans” secured from the reserve funds of cooperative societies.
The Sahakarana Sangham Punarudhdharana Nidhi Padhdhati (cooperative revival fund scheme), according to Cooperation department sources, is meant for the rehabilitation and revival of ailing, weak or defunct societies and helping the better performing ones to diversify into newer, profitable areas.
The proposal for the fund, in particular the move to use the reserve funds of cooperative societies for it, has sparked a debate against the backdrop of the Karuvannur Service Cooperative Bank scam and the subsequent bail-out proposals.
Primarily, two sources will be made use of for creating the fund: in the first case, loans secured from the reserve fund and the agriculture stabilisation fund (money transferred from the profits of cooperative societies) under the Cooperative Societies Act. This contribution will made be in accordance with the norms finalised by a high-level panel, according to the…
