Cooperation Minister Dr Damodar Rout on Wednesday said the State Government has repealed the Orissa Self-Help Cooperative Society Act 2001 after it got to know that several inter-State cooperative societies resorted to chit fund business in the name banking business after enactment of the Act.
The Minister said this in reply to a question of BJD MlAs Debasis Nayak and Jiban Pradip Dash who raised questions about illegal banking by some cooperative societies.
While Dash said after abolition of the Orissa Self-help Cooperative Society Act 2001 many self-help cooperative societies got themselves registered with the Registrar of Cooperative Society but never reported their banking activities, which they are still doing in various parts of the State, especially Baleswar and Kendrapada, to the Registrar and wanted a clarification in this regard, the Minister said appropriate action would be taken if such complaints are brought to the notice of his department.
Similarly, Nayak wanted to know on whether there is any rule or provision that allow cooperative societies to do banking business and if there is any credit guarantee scheme, Rout said, as per rules, cooperative societies can receive deposits and lend loan.
