Sunday, 13 November, 2011



No.47382/73/M&P (4)             
Office of the Registrar of Cooperative Societies,
                                              Trivandrum, 24th December 1973


Sub:   Godown by Co-operative Societies-Leasing/renting out to other organisations-Instructions issued.

The National Co-operative Development Corporation has pointed out certain instances where godowns constructed by Co-operative Societies with their assistance were rented/leased out to other organisations for use.  The Corporation has observed that  financial assistance was given by the corporation to enable Societies to have their own godowns for their use, and not for the use of other institutions or for earning rent.

The financial assistance for construction of godown is given by the National Co-operative Development Corporation to the Co-operatives to facilitate their operations in respect of sale of agricultural produce supply of agricultural inputs including fertilisers and providing facilities to the agriculturists for storage of their agricultural produce for disposal at a later date on better prices. If this practice of leasing out Co-operative godowns to other organisations is not discontinued the very purpose of the scheme under which financial assistance is being provided by the Corporation to the Co-operatives for creation of additional storage capacity would stand defeated.

The practice of leasing out/renting out of godowns by Co-operatives should be discontinued and godown built up by societies availing assistance shall be rented out only with prior approval of the Registrar of Co-operative Societies.  The concerned societies will also see that suitable steps are taken to ensure the optimum utilisation of the storage capacity of the godowns.
For Registrar of Co-operative Societies 

\¼À Pn.(3)14033/74    
 klIcWkwLw cPnkv{Smdm^okv
                                            Xncph\´]pcw, 1974 amÀ¨v 27
kÀ¡peÀ \¼À 8/74/Pn.3
hnjbw: 80 mw hIp¸v {]Imcapff N«§Ä \S¸nem¡pt¼mÄ IqSpX hcp¶ Poh\¡msc kw_Ôn¨v.
tIcf klIcW \nbaw 80 mw hIp¸p {]Imcw Hmtcm kwL§fnepw \nban¡mhp¶ Poh\¡mcpsS F®hpw AhcpsS i¼f tXmXv, tkh\ hyhkvYIÄ apXembhbpw \nivNbn¨psIm­pff N«§Ä 1þ1þ1974 apX {]m_ey¯n h¶ncn¡pIbmWtÃm.  F¶m Cu N«§fpsS adhn \n¶p sIm­v Nne kwL§Ä \nehnepff Nne Poh\¡msc A\ymbambn ]ncn¨p hnSp¶Xmbn Adnhmbncn¡p¶p. N«§Ä \S¸n hcp¯pt¼mÄ AXphsc XpSÀ¶p h¶ncp¶hcpw F¶m N«§fn ¢n]vXs¸Sp¯nbXnepw IqSpX hcp¶Xpamb Poh\¡msc s]s«¶v ]ncn¨p hntS­XmsW¶v hmZn¡p¶Xn \ymbanÃ.  A{]Imcapff kvYnXn hntij§fn cPnkv{SmdpsS A\phmZt¯msS Poh\¡mcpsS F®¯ntem i¼ftXmXntem hyXymk§Ä hcp¯phm\pw 188 mw N«¯n hyhkvYbp­v. AXn\m Ignbp¶Xpw \nehnepff Poh\¡msc ]ncn¨p hnSmXncn¡phm\pw ASp¯ Hgnhp hcp¶Xphsc N«§Ä {]Imcapff {]tXyI A\phmZ§Ä hm§n AhcpsS tkh\§Ä XpSÀ¶psIm­p t]mIphm\pw {iant¡­XmsW¶v 80þmw hIp¸v {]Imcapff N«§Ä _m[IamIp¶ FÃm kwL§tfbpw Adnbn¨p sImffp¶p.
klIcW kwLw cPnkv{SmÀ

No.52902/73/PL & C (5)         
Office of the Registrar of Co-operative Societies
                                                  Trivandrum, 28-3-1974
Sub:   Investment of funds of Co-operatives-Instructions
Ref:   Registrar’s-Circular 11162/70/PL & C5 (No.45/70) Dated 12-3-1970
In the Circular cited it was emphasised that the policy of the department in the matter of investment of funds of Co-operatives should be to conserve the funds available with the Societies within the movement itself.  Only to facilitate Banking business such as collection of bills etc., Societies should be permitted to open accounts with banks outside the Co-operative Sector and that too to the extent necessary.  It was also specified that prior sanction of Registrar should be obtained for making investments in Commercial Banks.
Deputy Registrars were requested to see that the policy regarding investment of funds is scrupulously followed by the societies and that proposals for sanction of ‘Registrar’ need be sent only in really deserving cases.  A growing tendency is noticed among the Co-operative Societies to invest funds in Commercial Banks for one reason or other.  A review of the investment of surplus funds of Co-operative Societies with other institutions indicates an alarming position, in that, large amounts are deposited by Co-operatives outside the Co-operative Sector.  The total deposited amounts with all the Co-operative Institutions as on 30-6-1972 was Rs.36 Crores only.  The reasons generally attributed for the preference shown by some of the Co-operative Institutions are (1) absence of branches of Central Co-operative Banks/State Co-operative Bank in the vicinity of the Societies (2) Comparatively higher rates of interest offered by Commercial Banks.
Even though the reason that nonexistence of a branch of the Apex/Central Co-operative Bank can be urged in favour of investing of funds outside the Co-operative fold, the ground that the Commercial Banks offer high rates of interest is not quite acceptable, in view of the fact that without the active co-operation from sister institutions the overall ways and means position of Co-operative Institutions cannot be augmented easily.
That apart Section 57 of the Kerala Co-operative Societies Act lays down that  a society may invest or deposit its funds.
(a)     in Government Savings Bank.
(b)     in any of the securities specified in Section 20 of the Indian Trusts Act 1882.
(c)     In shares or securities of any other Societies approved for the purpose by Registrar by General or Special order.
(d)     In any bank approved by Registrar for the purpose.
(e)     In any other prescribed manner.

The above provisions make it clear that prior sanction of Registrar is essentially required for the investment of funds except in the manner at (a) & (b) above.  Many of the societies invest their funds in institutions not approved by Registrar.  This is a clear violation of the provision cited.

In spite of directions regulating the investment of funds the societies are resorting to unhealthy practice on account of various reasons. The following further instructions are issued in this context for guidance.

1.       All Primary Societies should be directed to invest their surplus funds in the branches of the District Co-operative Banks only.  In case where it is found difficult or impracticable for a society for investing its funds daily on account of the distance of the branch concerned etc., that primary societies can be permitted to invest the funds in approved Commercial Banks upto a limit sanctioned by Registrar.  Prior sanction of Registrar should be obtained in such cases.  As soon as the said limit is exhausted the primaries should transfer the amount to the District Co-operative Bank.  The Deputy Registrars will take action accordingly and issue suitable instructions to the primary societies.

2.       The District Co-operative Banks should make sufficient campaigns in persuading the societies to deposit their surplus funds in the Central Banks and detract the primaries from approaching the commercial banks.  The District Co-operative Banks should also locate the suitable places for the opening of their branches taking into account the convenience of their member societies and activise their efforts in the mobilisation of the deposits of Co-operatives.  Their role as a Central Financing Agency should be impressed upon the Primaries by making adequate canvassing of deposits.

3.       The Central Banks should invariably invest their surplus funds in long term deposits in State Co-operative Bank thereby creating a discipline for the guidance and adoption by primaries.

4.       Only justifiable cases should be referred to Registrar for according permission, investing outside the Co-operative fold.
5.       Necessary register indicating such investments in Commercial Banks by the Primary Societies/Central Banks on the strength of Registrar’s order should be maintained in the Deputy Registrar’s office with the following Columns:

(1).    Name of the Dist.Co-operative Bank/Societies having investment in the Commercial Bank.
(2).    Name of the Commercial Bank in which the said investment is made
(3).    Details of Registrar’s Sanction
(i)  No.& Date
(ii) Limit sanctioned
(iii)            Period

(4).    Actual investment made by the Bank/Societies as at the end of every quarter say
(5).    Remarks.

6        Violation of the direction has to be watched carefully by the Deputy Registrars, District Co-operative Banks and State Co-operative Bank as the case may be and suitable action taken.

          The receipt of the circular should be acknowledged.
T. R. Sankara Pillai
Registrar of Co-operative Societies

Office of the Registrar of Co-operative Societies
                                              Thiruvananthapuram, 10th April 1974
CIRCULAR No. 13/74
Sub:   Co-operative Societies-Use of vehicles instructions issued.
It has been brought to my notice that there is no uniform rules at present regulating the use of vehicles owed by the Co-operatives.  In view of the present scarcity in the supply and the high cost of petrol it is considered imperative that there should be a uniform pattern of rules to control the use of vehicles owned by Co-operatives.  With the above objective in view the following model Rules are suggested for adoption by co-operatives, for the use of vehicles owned by them.  On the basis necessary subsidiary rules with such minor modifications as found necessary may be framed and got approved by the authorities concerned.
(1)     The Chief Executive Officer of the society shall be responsible for the proper use, care and maintenance of the vehicle and regulating its journeys in accordance with the sub rules approved by the committee.
(2)     The vehicle shall ordinarily be used only for the bonafide purposes connected with the business of the society.  The committee will specify the purposes to which it may be utilised.
(3)     The following accounts shall be maintained in respect of the vehicle
          (i)      Log Book
          (ii)     A register showing the cost of petrol, oil etc. consumed and all incidental receipts and expenditure.
          (iii)    A record of repairs and replacements indicating the cost and the dates on which they were carried at and of spare parts.
          (iv)    An inventory of the equipments including condemned parts.
(4)     The Controlling Officer shall check the above records periodically.
(5)     The vehicle may be permitted to be used on non-duty journeys/other private purposes with the permission of the Controlling Officer.  Charges at the rates fixed by the Committee shall be levied for such use.
(6)     The vehicle shall be got tested by a reputed workshop at the nearest Centre, at least once in six months.  Along with the testing, the rate of fuel consumption shall also be got fixed.  Where any decrease in the normal or previously certified rate of consumption of fuel is noticed and there is reason to suspect that the decrease is due to mechanical defect, the testing officer should also record the nature of defect and recommend further action.
(7)     The vehicle shall be serviced properly at intervals in consultation with a technical expert.
(8)     The vehicle shall ordinarily be garaged at the premises of the society or at other places approved by the Committee.
(9)     The Controlling Officer shall check the actual fuel consumption periodically with reference to tested mileage and actual mileage obtained.
(10)   If the meter record is found defective the driver shall immediately report the fact to the Chief Controlling Officer who shall take necessary steps to have the meter repaired.
(11)   The vehicle shall ordinarily be driven only by the driver appointed for the purpose.  In exceptional cases, other persons who possess valid driving licences may be allowed to drive, with the permission of the Controlling Officer.
(12)   The Vehicle shall carry a plate in front and rear indicating the name of the society.

The Deputy Registrars are requested to ensure that the societies adhere to these instructions.

T. R. Sankara Pillai
For Registrar of Co-operative Societies

\¼À Pn.(3)þ26490/74   
klIcW kwLw cPnkv{Smdm^okv,
                                          Xncph\´]pcw 1þ8þ1974

kÀ¡peÀ \¼À 32/74

hnjbw:  kÀ¡peÀþNc¡pIfpw kvtäm¡pIfpw ssIImcyw sN¿p¶ klIcW kwL§Ä Xo ]nSn¯¯ns\Xncmbn C³jzÀ sN¿p¶Xv kw_Ôn¨v.
CubnsS Hcp klIcW kwL¯nsâ hÀ¡v tjm¸pw AXnep­mbncp¶ D]IcW§fpw C³jzÀ sN¿m¯Xp ImcWw AhnNmcnXambn kw`hn¨ Hcp Xo ]nSn¯s¯ XpSÀ¶v hfscb[nIw \jvS§Ä kw`hn¨Xmbn Adnhmbncn¡p¶p.  Nc¡pIfpw kvtäm¡pIfpw ssIImcyw sN¿p¶ klIcW kwL§Ä Xo]nSp¯¯n\v FXncmbn C³jzÀ sNt¿­Xv A\nhmcyamsW¶v CXn \n¶pw hyIvXamWtÃm.  BbXn\m Nc¡pIfpw kvtäm¡pIfpw ssIImcyw sN¿pIbpw kq£n¨p h¡pIbpw sN¿p¶ klIcW kwL§fnseÃmw Xs¶ Xo ]nSn¯¯n\v FXncmbn C³jzÀ sN¿Wsa¶v CXn\m Adnbn¨p sImffp¶p.  hniZ hnhc§Ä tIcf kvtääv C³jzd³kv B^okn \nt¶m P\d C³jzd³kv tImÀ¸tdjsâ GsX¦nepw B^okpIfn \nt¶m Adnbmhp¶XmWv.
klIcWkwLw cPnkv{SmÀ¡pth­n.
No. 10054/CE2/74/AD.                                                                                  Trivandrum, 15th May 1974

Sub:   Audit of Co-operative Institution-Non availability of record-Procedure to be adopted-Instructions-Issued.

Under Section 63 (1) of Kerala Co-operative Societies Act the Registrar of Co-operative Societies shall audit or cause to be audited by the person authorised by him by General or Special order in writing in this behalf the accounts of every society at least once in each year.  The Accountant General, Kerala has stated that the audit of accounts of Co-operative Societies is very heavily in arrears.  Upto 1971-72 out of 6162 accounts which remained unaudited, 4841 accounts were not audited for want of records.  It is seen that in a large number of cases even basic accounts/records are not being maintained or are not available and this allows financial indiscipline.

At present under section 65 of the Kerala Co-operative Societies Act, summons can be issued to the Societies for production of records for audit.  This  has, however, not been an effective process.  Government therefore consider that a more stringent procedure should be adopted against the societies which fail to produce records for audit.

Government is of opinion that if a society does not produce its records after issue of summons under section 65 of the Kerala Co-operative Societies Act, then the Deputy Registrar of Co-operative Societies (Audit) may initiate action to liquidate the recalcitrant society and then transfer the file to the Deputy Registrar (General) for further action.
S. Nagarajan
Additional Secretary


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