Ahead of local bodies polls, govt set to wield more ‘control’ over 100 cooperative societies

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The new rule says that an elected body will by default stand dissolved with completion of its 5-years term. So far, the bodies used to function until the society’s next elections. The amended clause 74(D) says, “Where in respect of any society, including a society existing immediately before the commencement of the Gujarat Co-operative Societies (Amendment) Act 2015, a new committee of management is, for any reason whatsoever, not elected before the expiry of the term of the office of members of a committee of management of such society or having been elected not functioning within a period of three months, the registrar shall by an order writing, appoint a person or a committee of persons to be the custodian of the society for a period of one year or until a new committee of management is elected or, as the case may be, starts functioning.”

“In Mehsana Dudh Utpadak Sahkar Mandali (MDUSS), the term expired 11 months back and for Mehsana District Cooperative Bank it expired 14 months back,” said government spokesperson and health minister Nitin Patel.

Vipul Chaudhary, chairman MDUSS, had been facing corruption charges and was recently removed by the High Court. MDCB chairman Natu Patel, too, has been facing corruption charges. Patel is a Congressman and had contested against Nitin Patel from Mehsana in 2012 Gujarat Assembly election. Chaudhary, a former Congressman, has joined the BJP, but was seen in a Rahul Gandhi meeting during his visit to Gujarat tour in the run-up to 2012 elections. The third big cooperative where the axe will fall is Gujarat State Co-operative Marketing Federation Limited (GUJCOMASOL), whose chairman, too, is Natu Patel.

“GUJCOMASOL has not seen elections in many years”, said Nitin Patel. The GUJCOMASOL is mainly into agricultural activities and was mired in controversy a couple of years back over illegal sale of urea. Also in the list are Sanand Kharid Vechan Sangh, Mansa Kharid Vechan Sangh and Ahmedabad Dudh Utpadak Sahkari Mandali. “Of these 100 societies, not all have Congress-supported bodies. There are BJP bodies also. And most of these are small societies,” said Nitin Patel.

He added, “This is not a political move. But the act was amended to bring order in the cooperative societies.”

Natu Patel, however, alleged that it is a political move. “I and Nitin Patel are political rivals in Mehsana. I have been targeted,” he said. Nitin Patel said, “From selling of 5,000 bags of in the open market to awarding contracts to kin and misappropriation of Rs 2 crore silver, there are as many as 14 charges against Natu Patel.”

Meanwhile, Mehsana District Cooperative Bank’s current body has moved the High Court against the appointment of custodian.

Chaudhary, too, is facing allegations of financial irregularities at Mehsana Dairy. As per the new law, he will now not be eligible for membership for six years. In a public interest litigation, filed by two members of Mehsana Dairy, misappropriation in the production of cattle feed by the dairy union resulting in the loss of Rs 200 crore was alleged against him.

Also, the petitioners had claimed that in financial year 2012-13, Mehsana Dairy had sold 7,000 metric tonne milk powder directly at the rate of Rs 162-164 per kilogram while the same powder was sold by GCMMF at Rs 205-210 per kilogram.

The new act also mandates online audit for the cooperative societies, the government may initiate disciplinary action against many other societies. Besides, societies whose office- bearers have completed over two-and-a-half years, will have to go. As per the amended act, the term has been reduced to 2.5 year from 5 years.