Pinarayi Vijayan
As a result, cooperatives would lose their very basic purpose, and the sector would become inaccessible to ordinary citizens and small farmers, Vijayan said. But once money is lost, the credibility of the entire cooperative sector comes under question.
Kottayam : Leader of the opposition Pinarayi Vijayan said that multi-state cooperative societies are creating disorder in the cooperative sector. With the new amendment, the protections and benefits earlier available to depositors, borrowers, and other stakeholders will be taken away,” Vijayan said. He said Supreme Court has unequivocally clarified that, under the Seventh Schedule of the Constitution, the cooperative sector is a state subject.
“In such groups that promise high interest, depositors are ending up losing even their principal amount. Many people enter into dealings assuming these too are cooperatives. Neither the cooperative department nor the state govt can take any action against this. Central govt has complete control over them. Through amendments to the Multi-State Cooperative Societies Act, Centre is undermining the federal system. Yet Centre is trying to seize states’ powers, even overriding that verdict. Restrictions on controlling and using a cooperative’s assets and capital will be removed. The cooperative’s assets and income would have to be used in the manner directed by either central govt or large corporate investors. This would hinder support meant for ordinary people.
He was inaugurating the centenary celebrations of the Ezhumattoor Cooperative Bank, Mallappally, Pathanamthitta, on Thursday.