Vol. 58 No.

7 January 2021
The

Vol. 58 No. 7 JANUARY 2021

Editor-in-Chief
N. Satya Narayana
Editor
Sanjay Kumar Verma

Consulting Editor
Alok Kumar

Published by
National Cooperative Union of India 09 ‘Power of cooperatives should be
Tel: 011-49407837, 41811157, 40793299
highlighted’
E-mail : ncui.pub@gmail.com
13 UCBs playing a significant role in
Subscription Rates Atmanirbhar Bharat: Jyotindra Mehta
Life - Rs. 5000
15 NCUI asks for same incentives to PACS as
Annual - Rs. 500
given to FPOs
For Articles 16 Leveraging PACS for Agri Infrastructure
Contact: Sanjay Kumar Verma
(Mobile No. 9871146034)
19 PACS should take benefits of new farm bills:
Nabard Chairman

20 Time to Dump Emotions

production support by
Swati Communications 22 Recession and Cooperatives in India
T: 011-41659877, 09213132174
24 Laws settled by Supreme Court on
Co-operatives in 2020
Opinions expressed in ‘The Cooperator’
do not reflect views of the National 30 lgdkfjrk gS fdlku vkanksyu dk funku
Cooperative Union of India
32 LDP for Labour Coops

Total PAGES 36 33 In News

Total PAGES 36 JANUARY 2021 The Cooperator 3

4 The Cooperator JANUARY 2021
EDITORIAL

Time for Introspection

The New Year is the time for not only introspection by undertaking a stock of the past developments, but
also an occasion to look ahead with a sense of optimism for the future.

During the year that ended, no one had visualized in the beginning that a severe calamity would hit
the world economy, which would have grave consequences for the growth of any sector, including
cooperatives. The deadly corona virus led to death and destruction, loss of livelihood, and migration of
workers from the cities to the villages. The painful lockdowns which followed disrupted all economic
activities. The cooperative sector in India was also under duress, but it rose to the occasion by providing
monetary and humanitarian assistance to the people in crisis. Cooperative organizations like AMUL,
IFFCO, KRIBHCO, NAFED, MARKFED, etc. spared no efforts to ensure that the essential commodities
reach the doorsteps of the people in need despite disruptions in supply chain network. The strength
and resilience of the cooperative sector helped it in generating positive awareness about cooperatives
amongst the masses.

The corona pandemic taught cooperative organizations how to make use of digital technologies in
their functioning. Besides business activities, conferences, seminars, workshops, and education &
training programmes were conducted online. Despite the challenges faced by the pandemic, NCUI,
in addition to its regular training programmes, also organized events like International Cooperative
Day celebrations, Vaikunth Bhai Mehta Memorial Lecture, Cooperative Week celebrations, webinar in
collaboration with SEWA, etc. by making use of latest digital technologies. The key recommendations
which emerged during these events like coops joining hands with others in combating climate change,
developing hi-tech cooperative banking, grooming PACS into multi-service cooperative societies,
creating funding platform of cooperatives, etc. may have far-reaching implications for the growth of
cooperative movement in future.

The online training programmes of NCCE got diversified in new areas like cyber security, digital
technology, etc. and received higher number of participants. During the year, NCUI signed an MOU
with APEDA to facilitate exports by cooperatives and joined hands with FICCI as an academic partner
in organizing Global Youth Entrepreneurship and Industry Connect 2020.

During the year, NCUI showed its commitment to safeguard cooperative autonomy as its erstwhile
President Dr Chandra Pal Singh Yadav raised the vital issue of finding a solution to the impasse of
97th Constitutional Amendment Act in the Rajya Sabha which got wide support from all across party
lines. Meanwhile, NCUI opposed Banking Regulation Amendment Bill on the ground that it violates
cooperative principles and values. During pre-budget consultations, NCUI forcefully advocated that
the incentives provided to FPOs should be extended to PACS as well.

In the New Year, NCUI’s foremost priority would be to ensure that the plans and schemes of the government
in line with our Prime Minister Narendra Modi’s vision to double farmers’ income are implemented by
cooperatives so that the benefits reach to the lowest sections of the society. Another priority would be
to provide necessary inputs to the government for reformulation of National Cooperative Policy which
is very important for providing a new direction to the growth of cooperative movement. There are
many future challenges before NCUI like improving work productivity in new areas, adopting digital
technologies, expanding horizons of cooperative education & training programmes, exploring new
avenues of resource generation, strengthening our relations with the government and other stakeholders,
and bringing the issues and problems of cooperative movement to the notice of the government so as
to find viable solutions.

Wishing the readers of ‘The Cooperator’ a very Happy New Year 2021!

JANUARY 2021 The Cooperator 5

6 The Cooperator JANUARY 2021

New Year Message
At the outset, on behalf of the
National Cooperative Union
of India, I would like to wish
you all a very happy and
prosperous NEW YEAR 2021.
May the New Year bring lots
of joy and happiness in your
lives.
During the year 2020, the
whole world including India
was badly hit by corona
pandemic which no one had
ever visualized. The world
economy was hit badly
resulting in loss of jobs,
and all economic activities
came to a standstill. The
cooperative sector was also
affected, but the cooperative
organizations rose to the
occasion to show tremendous
resilience as they served
the needs of the poor and
deprived sections of the
society in crisis in the best
possible manner. Besides
giving adequate monetary
assistance, they also provided
the much needed social
service by distributing food,
sanitizers and other essential
commodities among the
people.
Cooperative organizations
like AMUL, IFFCO,
KRIBHCO, and MARKFEDs
spared no effort to ensure
that essential commodities
reached the doorsteps of
the people in need despite
disruptions in supply chain
network as people have
full faith in the products
and services provided
NCUI President’s
by cooperatives. In fact,
cooperatives in India
emerged stronger during the
Covid pandemic.
Our Hon’ble Prime Minister
Shri Narendra Modi’s call
for Atmanirbhar Bharat in
the wake of corona pandemic
provided many opportunities
to cooperatives to emerge
as key institutions for
building a self-reliant India.
The cooperatives are quite
capable in implementation
of various schemes and
programmes under the 20
lakh crore Atmanirbahr
package.
During the year 2020,
NCUI continued to play
an important role in
strengthening the cooperative
movement. The Covid
pandemic did not deter
NCUI’s resolve to create a
meaningful impact through
its education and training
programmes. Through
effective use of online
platforms, which provided an
opportunity to connect with a
large number of participants,
more particularly women
and youth, the training
programmes expanded
their horizons by touching
upon new areas like digital
technologies, cyber security,
etc.
I am sure that with your
support and guidance we
will be able to successfully
address the challenges
and take the cooperative
movement to greater heights.
I once again extend on my
own behalf and on behalf
of the Governing Council
of NCUI, a very happy and
prosperous New Year.
Jai Hind, Jai Sahkar!
Dilip Sanghani
President, NCUI
JANUARY 2021 The Cooperator 7
8 The Cooperator JANUARY 2021
 ‘Power of cooperatives
should be highlighted’
The power of cooperatives, especially their ability to promote
mutualism, to provide livelihood, and to create new opportunities
during and after calamities and crisis needs to be highlighted, said
Shri Kadakampally Surendran, Minister for Co-operation, Tourism
and Devaswom, Government of Kerala while delivering a speech
during the inaugural function of Cooperative Week organized by
NCUI on 14th November 2020. Excerpts from his speech:

H
istorically, the negative
externalities of a social
or an economic crisis
increases the value and
relevance of cooperative phi-
losophy. This is much evident right
from the industrial revolution of
eighteenth century till now at this
time of Covid pandemic. In fact,
the impact of Covid 19 crisis is
multifaceted in negative as well
as positive terms – negative due
to its emotional, socio-economic,
political and cultural factors, and
positive due to certain factors that
help to reintegrate and reorganise
the social system as a whole.
Covid-19 pandemic, as you all are
aware, is wreaking havoc all over
the world. Our country is no excep-
tion. Many sectors have been chal-
lenged and some sectors have been
drastically affected. It has heavily
impacted on production, distribu-
tion as well as employment. The
severity of the pandemic on low-
income people, especially informal
workers, still continues.
While coming to Kerala scenario,
under the able leadership of Hon’ble
Chief Minister Sri. Pinarayi Vijayan,
we are managing the pandemic
situation in a unique and unparallel
way. We are ensuring the basic ame-
nities to all, quality healthcare free
of cost, increased money supply
to the economy by way of special
packages, welfare pensions, special
pensions, etc.
We have a vibrant and robust coop-
erative movement in the state. The
state government effectively utilized
the strength of cooperatives and we
could put into practice the time-test-
ed principle for overcoming these
difficult and terrible times through
the collective will of the people.
The cooperative sector in Kerala,
which has touched and transformed
the lives of lakhs of people in the
state, has pitched in to cushion the
ill-effects of the pandemic. The peo-
ple-oriented policies, which are the
inherent strength of the cooperative
sector, have helped the state to rear-
range the banking and non-banking
services to the people during these
difficult times.
The demand and supply side man-
agement of co-operatives in Kerala
during this pandemic is a model to
every such organizations the world
over. The Kerala Bank, the apex co-
operative bank of the state and its
constituent societies well catered to
the credit needs of farmers, SHGs
and low income groups. The cooper-
ative banking system could disburse
special liquidity fund of NABARD
to the tune of Rs. 1500 crore and low
interest bearing loans to the tune of
another Rs. 3500 crore during this
period. The banking activities in
the cooperative sector went ahead
without any hindrances. Banking
services were made available at
doorsteps whenever such a situation
was warranted. Welfare pensions
of the Government of Kerala were
delivered 7 times (worth around Rs.
3,200 crore) to nearly 21 lakh fami-
lies (around 50% of eligible benefi-
ciaries) by the cooperative societies
by following the safety precautions
even during lockdown period and
ensuing period of control. A signifi-
cant portion of the interest free-loan
“Chief Minister’s Helping hand
Loan Scheme” (CMHLS) to the tune
of Rs 2,000 crore disbursed through
the Kudumbashree has been given
by the cooperative sector. Gold loan
schemes to Non -Resident Keralites
at 3 per cent interest from Kerala
Bank as well as loan schemes for
employees in the tourism sector are
some of the schemes introduced to
alleviate the sufferings of people.
The Kerala Milk Marketing Federa-
tion, popularly known as MILMA,
shielded dairy farmers collecting
entire milk from them irrespective
of shortfall in demand. The Kerala
State Co-operative Consumer Fed-
eration (Consumerfed) ran mobile
super stores selling essential sup-
plies even in areas declared as
critical containment zones. They
delivered essential supplies, medi-
cines ordered online or through
mobile calls, to those stuck inside
their homes during the lockdown.
Consumerfed also took care to
store sufficient stock of food ma-
terials with food security of the
state in mind. When the neighbour-
ing state of Karnataka closed the
border roads of Kerala by putting
up sand barriers, Consumerfed
jumped into the fray by opening 10
Neethi stores in a single day in the
border areas to ease the difficul-
ties faced by people. The battery
of Neethi shops, Neethi medical
stores, pharmacies and cooperative
hospitals were also working non-
stop to serve the needy.

JANUARY 2021 The Cooperator 9

10 The Cooperator JANUARY 2021
The Fishermen Cooperative Federa-
tion, MATSYAFED, expanded the
chain of fish stalls in the state jointly
with other cooperative societies, up-
holding the principle of co-operation
among cooperatives. Cooperative
Federations in the traditional in-
dustries sector such as HANTEX
in handloom, COIRFED in coir,
CAPEX in cashew with the support
of Government of Kerala ensured
employment and income to the de-
pendent families during this period.
The sector gave financial support to
procure paddy during these times.
Cooperative societies also came
forward to construct more godowns
for storing the procured paddy from
the next season onwards. The pro-
curement of raw cashew nuts was
also done by the sector on behalf of
Kerala State Cashew Workers Apex
Industrial Cooperative Society
Limited (CAPEX).
One of the major cooperatives of
the state, the Uralungal Labour
Contract Cooperative Society
(ULCCS) is contributing a lot to
offset the harm done to the society
by the pandemic. They are provid-
ing 13,000 decent employments in
construction, manufacturing as well
as service sectors. Not only well-
established cooperative institutions,
but also various small cooperatives
across the state supported Covid
prevention activities. Cooperatives
came forward to help the commu-
nity kitchens, distribute food kits for
the poor families, supply medicines,
provide masks and sanitizers for
health workers as well as distribute
sanitizers and other safety equip-
ments among general public.
The cooperative sector contributed
significantly to the Chief Minister’s
Disaster Relief Fund (CMDRF).
Cooperative societies, employees,
directors, board members, all
contributed to CMDRF. Reluctant
to be fence-sitters, the cooperative
sector has set out to create 17,000
job opportunities out of the 50,000
job opportunities promised by the
“Cooperative societies
have opened 250 vegetable
procurement and sale shops
across the state. Big projects of
storage, value-addition, etc. are
at various stages of progress
taking support of NABARD
Infrastructure Development
Fund. Another significant
development is the effort to bring
all the products in the cooperative
sector under one brand and
cooperative mark and to open
new outlets (CoopMart) to sell
them. Four such outlets have
already started functioning,” Shri
Surendran said.
State Government in 100 days.
Out of this, till date we could
create 10,000 job opportunities by
way of MSME loans and another
1,000 employments directly by
cooperatives itself. The government
has quickly surpassed the 50,000
jobs target in 60 days and is now
planning to add another 50,000 jobs,
taking the tally to one lakh jobs in
four months. The cooperative sector
is also geared up to contribute
its might in this new addition as
promised by the government.
The cooperative sector has decided
to lend its hand to the Government’s
efforts to implement various devel-
opment projects also. Out of this, the
major intervention is in the field of
agriculture. The cooperative societ-
ies started cultivation of fruits and
vegetables on 3200 acres of land. As
the Government declared base price
for major vegetables in the state
for the first time in the country, the
cooperative sector has been asked
to take active part in the mission.
So far cooperative societies have
opened 250 vegetable procurement
and sale shops across the state. Big
projects of storage, value-addition,
etc. are at various stages of prog-
ress taking support of NABARD
Infrastructure Development Fund.
Another significant development is
the effort to bring all the products
in the cooperative sector under one
brand and cooperative mark and
to open new outlets (CoopMart) to
sell them. Four such outlets have
already started functioning.
There is a need to explain the Kerala
model of cooperative interven-
tions just to exemplify the inherent
strength of cooperatives to over-
come the difficult times. On this oc-
casion, I would like to mention one
more project which is directly not
related to the Covid situation. After
the devastating floods of 2018, the
cooperative sector in Kerala initi-
ated a project called Co-operative
Alliance to Rebuild Kerala (CARe
Kerala). Through this project so far
we have constructed and handed
over 2042 beautiful houses costing
Rs. 5 to 12 lakh per house to the af-
fected families. Now, the construc-
tion of flat complexes for landless
and homeless families is progressing
across the state under this project.
The power of cooperatives, espe-
cially their capability to promote
mutualism, provide livelihood, and
create new opportunities during and
after calamities and crisis needs to
be highlighted. At this auspicious
moment, I would like to remind the
statement of ILO Director General
– “Now is the time to look more
closely at this new normal, and start
on the task of making it a better
normal, not so much for those who
already have much, but for those
who so obviously have too little”.
The cooperative fraternity in the
country must rededicate itself to
create a better normal situation for
the socio-economic development of
the under privileged sections of the
society through cooperatives.
It is hoped that the efforts of the
cooperative sector along with other
sectors will help people overcome
this pandemic and we sincerely
wish that an effective vaccine of
corona virus is developed and made
available soon so that the world
returns to the old times of happiness
and peace n
JANUARY 2021 The Cooperator 11
12 The Cooperator JANUARY 2021

Addressing the 44th AGM
of NAFCUB held recently,
Chairman Shri Jyotindra Mehta
said that the urban cooperative
credit sector is playing a very
significant role in Atmanirbhar
Bharat. He informed that the
urban cooperative banks of
Gujarat in association with the
state government of Gujarat have
formulated a scheme of financing
micro units and have disbursed
a sum of Rs.14,000 crore in a
short span of just eight months.
NAFCUB Chairman shared
details of the developments related
to Umbrella Organization for the
UCBs and also spoke about the
challenges faced by the sector.
Excerpts from his speech:
NAFCUB’s biggest achievement
during 2019-20 was approval from
the RBI to promote a National Level
Umbrella Organization (UO) for
Urban Cooperative Banks (UCBs).
The UO has been registered as Na-
tional Cooperative Financial and De-
velopment Corporation Ltd. having
its office in Delhi. The RBI in its ap-
proval letter had mentioned that the
UO would operate as an NBFC with
a subscribed share capital of Rs. 300
UCBs playing a
significant role in
Atmanirbhar Bharat:
Jyotindra Mehta
crore and accordingly NAFCUB is
preparing an application for getting
this licence.
Besides providing fund based and
non-fund based support, the UO
would also provide end-to-end tech-
nology support to the urban coopera-
tive credit sector and would function
as a Self-Regulating Organisation
(SRO) for the sector.
The UO is envisaged to be managed
entirely by professionals and will
have 50 per cent of independent
directors who will be the persons
of eminence in the fields of finance,
management, and technology. The
success of this game changing move
by NACUB will depend on the en-
thusiasm with which all the UCBs
involve themselves with the venture.
As per the RBI approval, the invest-
ments made by UCBs in share capital
of the UO would be counted outside
the prescribed limit of 10 per cent
of DTL for non-SLR investments. It
would not be difficult for the sector
comprising of 1,500 plus banks to
subscribe the required share capital
of the UO of Rs 300 crore.
With sincere efforts of NAFCUB and
others, cooperatives achieved parity
with corporates in income tax rates,
an anomalous position which was
bothering all of us in the sector. We
had met the Hon’ble Union Home
Minister and Hon’ble Finance Min-
ister in this regard. Convinced that
cooperatives were being put at dis-
advantage for no reason, the Hon’ble
Finance Minister was kind enough to
correct the anomaly in her budget for
the year. Now UCBs are required to
pay income tax @22% on their profit
as against 30% earlier. This would
help in strengthening the reserves
of UCBs and thereby provide more
liquidity to the sector.
Enhancement of DICGC cover on
deposits to Rs.5 lakh from Rs.1 lakh
was another welcome culmination
of the long struggle of NAFCUB to
get the limit increased. Now with the
increased coverage of Rs.5 lakh per
depositor per bank, the confidence of
public to keep larger deposits with
UCBs would grow and this would
eventually increase the deposits of
UCBs. In this context, NAFCUB had
strongly opposed to creating linkage
of enhancement with risk-based
premium, and it was a vindication
of our stand that the enhancement
in limit has been made without risk-
based premium.
The recent Supreme Court Judgment
on Securitisation and Reconstruction
of Financial Assets and Enforcement
of Security Interest Act (SARFAESI
Act) in favour of cooperative banks
was another positive development
for the sector during the year. With
this judgment, all UCBs would now
be able to recover their bad debts in
a definite time frame. This would
help reduce NPAs, improve financial
parameters, and project better image
of the sector.
NAFCUB made concerted efforts
for including UCBs under MUDRA
and other schemes of the Govern-
ment of India for financing MSMEs.
The Ministry of MSME has been
very supportive and has announced
inclusion of all UCBs under certain
schemes. We are in touch with the
Finance Ministry for streamlining
the guarantee cover scheme under
JANUARY 2021 The Cooperator 13
14 The Cooperator JANUARY 2021
CGTMSE for UCBs. It is time the
UCB sector was recognized as an
important player in financing of
MSMEs.
The recent amendments to the
Banking Regulations Act have
conferred more powers to the RBI
for regulating cooperative banks. In
this context, NAFCUB requested the
Hon’ble Finance Minister that not-
withstanding whatever is contained
in the amendments, the basic cooper-
ative character and democratic func-
tioning of cooperative banks should
NCUI asks for same incentives to PACS
as given to FPOs
A
t the pre-budget consulta-
tion meeting with the key
representatives of agriculture
and cooperative sector in which
Union Finance Minister Nirmala
Sitharaman and senior officials of
Finance Ministry were present, N
Satya Narayana, Chief Executive,
NCUI putting forth the demands
of the cooperative sector said that
while FPOs are being provided
various incentives, same incentives
may be provided to viable PACs
and multipurpose societies which
may help in enhancing the price of
farmers’ produce after processing.
Pointing out that 60% of PACS in
the country are viable, he said that
the viable cooperatives need to be
“Besides providing fund based
and non-fund based support,
the Umbrella Organisation
(UO) would also provide end-
to-end technology support to
the urban cooperative credit
sector and would function as a
Self-Regulating Organisation
(SRO) for the sector,” NAFCUB
Chairman said.
not be affected. Hon’ble Finance
Minister has given an assurance on
the floor of the House that nothing in
included under the definition of
MSME under Atma Nirbhar Bharat
Scheme as in case of MSMEs.
Based on Amul model, N Satya
Narayana argued that PACS can
procure the agricultural produce of
all farmers, particularly poor, and
process the same at various levels ac-
cording to the capability of technol-
ogy adoption. He said that through
this, distress sale of farmers of any
product can be avoided, for which
sufficient fund base mechanism
shall exist as in case of MSMEs and
FPOs. Further, he said that clause (v)
of sub-section 2 of Section 80 P of
Income Tax Act be amended so as
to extend the benefit of income tax
the Bill will have any adverse effect
on the cooperative character of the
cooperative banks.
Our sector is facing many challeng-
es. The most immediate challenge
is to deal with post Covid economy.
Another challenge is to adapt with
the changing regulatory regime that
is going to unfold in the wake of
amendments to the Banking Regu-
lations Act. Yet another and a very
important one is to ensure that the
UO becomes a pillar of strength for
the sector in the days to come n
deduction to all primary agriculture
societies engaged in processing
of agricultural produce of farmer
members, whether with or without
the aid of power. Currently, only
those PACS, which are processing,
without the aid of power are ex-
empted. Further, he said that under
Atmanirbhar Bharat Package, within
the schemes already sanctioned,
cooperatives may be given their due
share so that they can serve the farm
community better. Representatives
of Punjab Agriculture University,
Bharatiya Kisan Unon, Spice Board,
etc were present on the occasion.
NCUI being the sole representative
of the cooperative movement was
invited in the meeting n
JANUARY 2021 The Cooperator 15
 A
griculture has always been
the mainstay of the country
and the issues affecting its
development, primarily
credit, led to the establishment of
Primary Agriculture Credit Society
(PACS) in the beginning of the
twentieth century. Even after inde-
pendence, agriculture development
has been the main theme of planned
development in the country. The
Five Year Plans emphasized upon
the development of cooperatives
in agriculture sector as a balancing
factor between public and private
enterprise. The democratic character
of management, coupled with the
support available to primary societ-
ies from higher tier cooperative
structure, enables primary societies
to act as an effective instrument for
decentralized planning and imple-
mentation. It has been a conscious
policy of both the union and state
governments to promote coopera-
tives.
The importance of infrastructure
for development of any sector of
economy, more so for agriculture,
needs hardly any emphasis. Infra-
structure is like the arteries and
veins necessary for sustenance and
growth of agriculture in the country.
Though a lot has been done since
independence, our primary focus
has been on increasing production
and productivity in agriculture.
This has led to creation of large
scale infrastructure relating to ir-
rigation, etc., but not much has
been done in the field of logistics
like warehouses and value addition,
which are essential for increasing
the market value of the produce. It
is a matter of concern that public
capital formation in agriculture has
been declining from 3.9% of agri-
Gross Domestic Product (GDP) in
1980-81 to 2.2 % in 2014-15 and re-
covered slightly to 2.6% in 2016-17.
Incidentally, the input subsidies
on fertilisers, water, power, crop
insurance and agri-credit have risen
from 2.8% to 8% of the agricultural
Leveraging PACS for
Agri Infrastructure
M K De* & Sri A K Srivastava**
PACS should be leveraged to create small and modern
warehousing and cold storage facilities near farms.
GDP during the same period. This
approach has not found favour with
many economists1.
There were 95,328 PACS as on
March 2018 having a membership
of more than 13 crore, spread over
nook and corner of the country. Ap-
proximately, one third of its members
were small and marginal farmers2.
Contrary to common misconception
about this structure, most of these
societies (approx. 86%) are either
viable or potentially viable. They
had disbursed around Rs. 98,670
crore by way of agricultural credit
during 2017-183. Out of total credit
disbursement of Rs. 13.68 lakh crore
to agriculture and allied sectors
during 2019-20, the share of coop-
erative banks was 10.9%4. So, the
1 Supporting Indian Farms, The Smart Way,
2018 – Publisher-Academic Foundation,
Ashok Gulati, Marco Ferroni and Yuan
Zhou
2 NAFSCOB, Performance of PACS 2017-18
http://nafscob.org/pacs_f.htm
3 NAFSCOB, Performance of PACS 2017-
18 Table-Xii - Loans Issued and Loans
Outstanding Purpose Wise http://nafscob.
org/pacs_f.htm
4 Annual Report, Chapter 1, NABARD,
2019-20
PACS had lion’s share in the agricul-
tural credit disbursed by cooperative
banks in the country. Further, PACS
has inherent advantages because of
three Ps - Proximity to the members,
Partnership with farmers (particu-
larly small and marginal farmers)
and Personalised attention.
Besides credit, the cooperatives
have also been considered as a
means to aggregate farmers for
establishing scale in production and
marketing activities. In view of their
close association with small and
marginal farmers, they continue to
be the most trusted agency for their
agricultural needs. It is expected
that the infrastructure created by
PACS would be the most suited in a
particular area as the agency has the
feel of ground realities more than
any player in the field.
An important aspect of the func-
tioning of PACS is their affiliation
to higher tier of credit structure and
close coordination with other insti-
tutions working in the field of ag-

* FM, BIRD
** Ex-GM, NABARD

16 The Cooperator JANUARY 2021

riculture. These societies can draw
ready support from rural coopera-
tive banking system consisting of 34
State Cooperative Banks and 363
District Central Cooperative Banks
with more than 15500 branches5.
Besides, PACS are in a position to
leverage their association with other
cooperative societies viz. processing
societies, marketing societies, etc.
for greater performance compared
to any other agency.
Over a period of time, the PACS
have proved to be time tested model
for tackling agricultural issues. They
have emerged as an important source
of credit, particularly for small and
marginal farmers, which constituted
86.2% of total farmers in the coun-
try6. Besides, these societies have the
experience of managing agricultural
infrastructure particularly godowns.
Cooperative storage godowns are
real, tangible and durable assets of
the economy, which have provided a
long stream of benefits. The societies
have displayed their financial and
managerial discipline in managing
these infrastructure since 1980s by
borrowing and constructing the rural
godowns7. In recent years, many state
governments have availed financial
assistance from National Bank for
Agriculture and Rural development
(NABARD) under its Rural Infra-
structure Development Fund (RIDF)
for construction of godowns at PACS
level. The PACS have been maintain-
ing the assets quite efficiently. The
godowns have served the farmers
well in ensuring good quality fertilizer
at reasonable rate as also in storage
of cereal crops in the course of their
procurement work.
The agriculture sector has grown
leaps and bounds since green revo-
lution and total food grain produc-
5 Annual Report, Chapter5, NABARD,
2019-20 – Figures are as on March 2019
6 10th agriculture Census -2015-16
7 International Development Association
(a World Bank’s arm) sanctioned loan for
construction of 7140 godowns for PACS in
Uttar Pradesh and Haryana in 1979. The
loan was routed to PACS through NCDC
and State Cooperative Banks. NCDC and
State Govt. also supported the project.
(Document of the World bank -Report
No. 6820 - documents1.worldbank.org ›
curated › pdf › multi-page
tion has improved substantially
and was estimated at 295.67 MT
during 2018-19. In horticulture
sector, the total production of fruits
and vegetable surpassed food grain
and attained a record production
of 312 MT. However, increase in
production has not led to increase
in farmers’ income. Though agri-
culture production has increased
substantially, the post production
activities have not improved to the
desired extent. The Report of the
Committee on Doubling Farmers
Income has also highlighted these
concerns by saying that “the success
of production as of now amounts to
half success, and is therefore not
sustainable”8. As per a study con-
ducted by ICAR - Central Institute
of Post-Harvest Engineering and
Technology (CIPHET), there was
wastage of fruits and vegetable to
the extent of 16% and that of oilseed,
pulses and grains around 10%9.
Govt. of India has embarked upon
an ambitious target of doubling
farmers income by the year 2022-23
to help farmers, reduce agrarian
distress and bring parity between
the income of farmers and that of
others10. This is considered an uphill
task keeping in view large variation
in income levels of farmers and the
very little increase in income levels
of small & marginal farmers in the
past. Besides, there is wide regional
variation in farmers’ income with
very low level of income of farmers
in the state like Bihar, West Bengal,
Uttarakhand and others11.
Keeping in view the obstacles in
increasing farmers’ income by way
of increase in production, the way
8 Report of the Committee on Doubling
Farmers’ Income –Volume VIII, Input
Management for Resource Use Efficiency
- ttp://farmer.gov.in/imagedefault/DFI/
DFI%20Volume%207.pdf
9 ICAR – CIPHET - https://www.ciphet.in/
study-on-post-harves-losses.php
10 NITI Policy Paper No.1, 2017 – Doubling
Farmers Income https://niti.gov.in/
writereaddata/ files/document_publication/
DOUBLING%20FARMERS%20INCOME.
pdf
11 Financial Express, 17 July 2019 - In
these 6 states, farmer families live on less
than Rs 5,000 per month https://www.
financialexpress.com/economy/in-these-6-
states-farmer-families-live-on-less-than-rs-
5000-per-month
forward would be creation of infra-
structure for activities like produce
aggregation, sorting and grading,
packaging, storing and even linking
the inner areas to major markets.
In order to address the issues emanat-
ing out of Covid-19 pandemic, Govt.
of India has embarked upon a vision
for agriculture under “Atmanirbhar
Bharat” which focuses on transform-
ing farmers into entrepreneurs and
doubling farmers’ incomes. As a part
of initiatives in this direction, the
union government has launched a
long term (10 years) Central Sector
Scheme for providing medium
and long term financing facility for
investment in viable projects for
post-harvest management infra-
structure and community farming
assets. The assistance from the fund
is expected to address issues relat-
ing to post-harvest losses, market
intermediaries and optimisation of
inputs. PACS, being the grassroots
institution, can prove to be an impor-
tant player in this context. In a bid
to seek participation of even small
sized PACS, an enabling provision
has been made for joining of hands
by 2-3 adjacent PACS for creating
an eligible common marketing infra-
structure. Further, the fund addresses
both supply and demand side issues
of credit. It enables concessional
cost of credit to grassroots borrow-
ing institutions through a provision
of interest subvention of 3% per
annum and also provides for credit
guarantee coverage for loans up to
Rs. 2 crore to incentivise participa-
tion of agencies like PACS in the
scheme. The scheme guidelines also
impose a cap of interest of 9% per
annum for all such loans. In order to
enable PACS avail funding facilities
from District Central Cooperative
Banks, these institutions have been
made eligible under the scheme only
if PACS are affiliated to them.
The post-harvest management
projects eligible under the scheme
include activities aimed at improving
storage facilities like warehouses,
silos, pack houses, value addition
JANUARY 2021 The Cooperator 17
 services like assaying, sorting &
grading, ripening chambers and
primary processing centres as also
improving supply chain services (in-
cluding e-marketing platforms), cold
chains and so on. All these activities
would definitely help in reducing
wastages and improve earnings of
farmers. The scheme also permits
building community farming assets.
The activities like organic input
production, bio-stimulant produc-
tion units, infrastructure for smart
and precision agriculture, etc. would
definitely help in improving the
quality of produce and increasing
productivity of the farmers. In order
to facilitate smooth implementation
of the scheme, Govt. of India has
already entered into Memorandum
of Understanding (MoUs) with all
public sector banks and a few private
sector banks.
NABARD is an apex level organisa-
tion providing financial support (re-
finance, credit and grant) to various
agencies engaged in the field of
agriculture and rural development.
It normally extends refinance and
credit facilities to scheduled banks,
apex level cooperative banks, etc.
Appreciating the need for develop-
ment of PACS, NABARD took a
bold initiative in partnering directly
with them way back in 2011-12.
Many PACS have been supported
under its scheme of upgrading
PACS as Multi–Service Coopera-
tive Societies (MSCS). A number
of initiatives were taken by PACS
taking advantage of this assistance.
The initiatives taken by PACS
under this assistance included assis-
tance for marketing infrastructure,
common village facility, etc.
In view of the encouraging experi-
ence gained by NABARD through
its association with PACS, recog-
nising the potential role of PACS
in improving agri-infrastructure
and reiterating its commitment to
agricultural development in part-
nership with grassroots institutions,
NABARD has introduced a special
refinance support at a very cheap
18 The Cooperator JANUARY 2021
rate of 3 per cent per annum. Given
the interest subvention available to
intermediary agencies, the ultimate
cost to be borne by PACS may be as
low as 1%. The refinance support is
being made available to state coop-
erative banks for a period of 3 years
for financing of PACS to enable
them create quality infrastructure.
NABARD aims to cover all the po-
tential PACS and convert them into
MSCS during this period. NABARD
has already commenced vigorous
implementation of the scheme and
has accorded in principle sanction
of proposals worth Rs. 1,568 crore
to more than 3,000 PACs spread
over 22 states in the country12.
The income of agriculturists is quite
low in eastern Uttar Pradesh and
the states of Bihar, Jharkhand, West
Bengal and Odisha. Their agriculture,
with tiny farm holdings, is saddled
with a large labour force. The health
of PACS and the rural cooperative
banks in these areas is coincidentally
not very strong. There is a need for
focussed attention to viable PACS
in these areas so that they help in
strengthening agricultural infrastruc-
ture, which is so essential for the de-
velopment of agricultural economy
in this region. Special focus on
PACS in these areas, similar to Mar-
shall Plan of USA in 1948, may be of
great help not only to this region but
for the country as a whole.
The farmers at present face the
plight of disposing off their produce
due to lack of appropriate storage
facilities. Warehousing and storage
are reservoirs of massive growth
potential in the sector as also evi-
denced from reduction in wastage
of onions to 10% in cold storage
compared to the 25-30% wastage
in traditional storage facilities on
farmers’ fields. The PACS must
be leveraged to create smaller but
modern warehousing and cold
storage capacity near the villages
at an appropriate cost by making
12 Ministry of Agriculture and Farmers’
Welfare, Govt. of India, PIB Press
Release- 18 September 2020 https://
pib.gov.in/PressReleaseIframePage.
aspx?PRID=1656140
use of cheaper power resources like
solar energy. The enabling legal
environment created by passing of
major legislation facilitating barrier
free environment for movement of
agriculture produce would provide
a great fillip to realisation of better
prices to farmers with storage ca-
pacity of perishable products.
The opportunity of creation of in-
frastructure through PACS provides
immense scope for development of
agricultural produce grown in select
regions like Makhhana (Fox Nut)
and maize in north Bihar, ginger
(Uttarakhand), turmeric (Lakadong
Variety in Meghalaya), etc. The
development of infrastructure nec-
essary for cultivation, harvesting,
processing and packaging will help
the farmers to reap the benefit from
niche market. Efforts should be
made in this direction as big players
in infrastructure have not been
able to address the concern of such
farmers.
PACS as an institution are not
managed by personnel with great
acumen for preparing detailed project
report, business plans, etc. which
are essential for availing financial
support from banking system. There
may be a need to provide some hand-
holding and other support to enable
them avail support from the scheme.
A critical component is the support
extended by higher tier institutions
like District Central Cooperative
Bank and State Cooperative Bank
as financial assistance is to be routed
to PACS through these institutions.
Besides, state government officials
of cooperation department both at
the state and district levels must
be taken on board for effective and
smooth implementation. There is
a need for closer coordination with
these institutions for optimum utili-
sation of the potential available in
leveraging PACS.
(The views expressed in the article
are those of the authors and do not
reflect that of the organisation they
belong to.)
 PACS should take benefits of new
farm bills: Nabard Chairman
S
peaking at a NAFSCOB func-
tion recently, Nabard Chair-
man Dr Govinda Chintala
stressed on cooperatives reinventing
themselves to take on the private
sector. “Commercial companies are
ahead of co-ops because they use
advanced technologies as well as
the most appropriate tools to reach
out to the people. As they employ
the best business models, there is a
need for cooperatives to re-invent
themselves”, Chintala said.
Chintala was speaking at a national
seminar organized by Nafscob
on ‘Recent Trends in Agriculture
Credit Cooperatives and Banking’.
He was the keynote speaker while
Kribhco Chairman Dr Chandra Pal
Singh Yadav was the chief guest.
The other guests included Biscomaun
Chairman Sunil Kumar Singh, NCUI
Vice-President K Sivadasan Nair,
NCUI CE N Satyanarayana, Andaman
& Nicobar State Cooperative Bank
Chairman Kuldeep Rai Sharma and
chairmen and CEOs of various state
co-operative banks, district central
co-operative banks, PACCs represen-
tatives and many others.
“Co-ops have to develop new busi-
ness plans for surviving in future
and Nabard is giving a business
development initiative cell to every
state cooperative bank. If PACCs
get computerized then co-ops can
be used for disbursing DBT,” Chin-
tala added.
Diagnosing the ills that plague
co-ops, Nabard Chairman felt
they have failed partly due to poor
governance. PACCs are the final
delivering point which is to be
strengthened. There are over 96k
PACCs in the country and out of
these 50k PACCs are not in a good
position but 35k PACCs are doing a
wonderful job in our country.
“Now, the time has come to focus
on 35k first and they should be
converted into multi service society
co-ops. PACCs can take the benefit
of New Farm Bills because the
market has been opened for farmers
to sell their produce anywhere in
the country,” Chintala said.
On the occasion, the Nabard Chair-
man announced: “We have decided
to give Rs 5 crore as grant to each
State Cooperative Bank for com-
puterization. With this Rs 5 cr you
can do computerization of 200-300
PACCs.”
In his inaugural address, Kribhco
Chairman Chandra Pal Singh Yadav
praised the efforts of co-ops for
playing an important role during
the lockdown imposed due to
Covid-19. “Neither state govts nor
“Now the time has come to focus
on 35k PACCs first and they
should be converted into multi
service society co-ops. PACCs
can take the benefit of New Farm
Bills because the market has
been opened for farmers to sell
their produce anywhere in the
country.”
Dr Govinda Chintala
Chairman, Nabard
the central government are giving
priority to coops, it is a matter of
concern. After assuming office in
states political parties give priority
to amending the co-op Act for their
own interests,” he said.
Referring to FPOs, Shri Yadav said
these should be registered under a
cooperative Act. “This work should
be given to PACCs. And I have seen
in several cases that FPOs are being
made as family groups for taking ben-
efits and the main objective of FPOs
stands defeated,” he pointed out.
“We have to work to increase the
membership base of the society
and link more and more youth
and women with the cooperative
movement. Besides, the 97th Con-
stitutional Amendment Act should
be implemented in all the states,”
Kribhco Chairman concluded.
Biscomaun Chairman Sunil Kumar
Singh, who presided over the
seminar, said: “Doubling the income
of farmers is only possible through
cooperatives. As we have seen in
the past, the Green Revolution and
White Revolution were brought
about by co-ops and I am sure the
Blue Revolution too will be carried
out through co-ops only.”
NCUI CE N Satyanarayana said,
“Co-ops in India are reorganiz-
ing and reinventing themselves to
serve mankind in this hour of crisis.
PACCs should come forward to take
the benefit of the Agri-Infra Fund
to augment storage and processing
for value addition of agricultural
produce at the farm gates.”
Nafscob MD Bhima Subrahman-
yam shared details of the activities
of his organization and said due
to Covid-19 cooperatives in many
countries are experiencing financial
and social difficulties n
JANUARY 2021 The Cooperator 19
 P
rotests against the three
recently passed farm laws
continue with farmer groups
demanding that these be repealed.
Protesting farmers sitting around
Delhi are refusing to withdraw
despite several rounds of talks by
the government assuring them to
protect and safeguard their interests
and find out a viable solution to
their areas of concern.
Protesting farmer unions have
termed these laws as anti-farmer
claiming they will result in with-
drawal of minimum support price
(MSP) and weaken the govern-
ment procurement systems through
the Agriculture Produce Market
Committee (APMC). Calling it a
conspiracy to “corporatisation of
agriculture”, they allege that the
new laws would leave farmers to the
mercies of the corporate houses.
Besides MSP, the other issues raised
by protesting farmers are legal re-
course in contract farming, registra-
tion and identification of buyers in
private mandis, tax parity between
public and private mandis, etc.
The new laws seek to bring in the
much needed reforms in farming
sector. They have the potential to
make farming a lucrative business by
opening the floodgates to private in-
vestment and innovation into a sector
which still provides employment to
more than half of India’s population.
Industry players and participants in
agriculture value chain feel that the
new laws are progressive and vision-
ary. More importantly, with these
laws the government is hoping to
achieve its mission of doubling the
farmers’ income by 2022.
It is interesting to note that most of
the protesting farmers are from the
two states of Punjab and Haryana
which have benefitted the most from
the existing MSP system. The em-
phasis on APMC and MSP system
by protesting farmers is misplaced.
NITI Ayog study of 2015-16 shows
* Director, Madhusudan Institute of Cooperative Management, Bhunabeswar
20 The Cooperator JANUARY 2021
TIME TO DUMP
EMOTIONS
Shantanu Ghosh
The new farm laws seek to liberate India’s farmers from a
vicious cycle they are trapped in.
that the awareness about MSP
remains as low as 6 percent and the
regime favours only a small propor-
tion of farmers. Also, according to
the NSS 70th round only 25 percent
of agricultural households sold
their produce to the APMC mandis.
Punjab and Haryana are the major
procuring states where 80-90 percent
of farmers sell their products at the
MSP. Allowing entry of private
players would increase competition
and even force mandis to overhaul
their entire operation. The new farm
laws open the access to many agri
start-ups working to digitize parts
of the process, provide data led crop
advisory, enhance market linkages
and build procurement infrastruc-
ture near the farm gate.
The structural reforms will incen-
tivise farmers to think beyond rice
and wheat for which the country
already has huge stocks and sur-
pluses every year and move towards
remunerative cash crops or venture
towards lucrative fields like dairy,
horticulture, poultry, floriculture and
fisheries. Farmers in many states
seemed enthusiastic to the new farm
laws, but their counterparts in Punjab,
who thrived because of a system
where the government buys their
entire produces of wheat and paddy
at MSP, nurtured the fear psychosis.
Some of the fears appear to have
some logic, but majority of them are
prompted by Adatiyas (middlemen)
who apprehend loss of business and
competition to the private players.
Another logical inference which
can be drawn for the agitating
farmers of Punjab is that each farm
household currently gets subsidies
that are more than double of what
the farmers from Andhra Pradesh,
Tamil Nadu, Madhya Pradesh and
Gujarat get. It does not matter for
the political parties in Punjab that
the Food Corporation of India (FCI)
is forced to buy paddy and wheat
from Punjab, even if it has led to
overflowing of godowns and buffer
stock excess of norms. This glut has
led to about Rs 1,80,000 crore being
blocked, and much of it is rotting.
Many would agree that the new farm
laws are a major step in liberating
India’s farmers from a vicious cycle
they are trapped in. These reforms
provide the legal and administra-
tive basis to permit contract farming
while protecting farmers’ rights. For
decades, agriculture in India has been
in dire need for reforms, and the
chronic distress which the farmers
face is a consequence of policy frame-
work that has kept them trapped in a
cycle of low productivity.
Relevance of MSP
The Royal Commission of Agricul-
ture (1926) recommended APMC
and following this some of the
provinces passed a Model Bill in
1931. However, most states passed
the APMC Acts in the period from
the second half of 1960s to the first
half of 1980s. The number of regu-
lated markets shot up from 146 in
1945 to 7,114 in 2014. The Royal
Commission also stated that the
market committees should not have
licensed brokers as members. But
all the APMCs now have traders
and commission agents as farmers.
Indeed, mandi committees represent
them more than the farmers. Also,
for many mandi committees, elec-
tions have not been held for years.
As per the last agricultural census
(2015-16), there were 146 million
agricultural holdings which may
have increased further because of
fragmentation leading to increase in
the number of small and marginal
farmers. Measured in terms of oper-
ating area, most holdings are in Ra-
jasthan, Maharashtra, Uttar Pradesh
and Madhya Pradesh. Also, in terms
of number of holdings, most fall in
UP, Bihar, and MP. Eighty six percent
of agricultural holdings comprise
of large/big farmers (less than 10
hectors). Therefore, keeping the inter-
est of the majority of the farmers in
mind, the government has taken a fair
view of the Act as expected.
The definition of farmers in the country
is also opaque and is contingent on
owning agricultural land. The survey
report of State Agrarian Relations and
Unfinished Task in Land Reforms in
2009 reported about the bad state of build infrastructure during the Green
affairs of the cadastral surveys and Revolution. The Economic Survey
land revenue records in the country. 2014-15 had some numbers, includ-
The fact remains that unless there are ing all fees. For example, for rice, it
proper surveys, a clear picture of the was 19.5 percent in Andhra Pradesh
land ownership title will not emerge. and 14.5 percent in Punjab. For wheat
Computerisation of old survey it was 14.5 percent in Punjab and 11.5
records is pointless. There is a digital percent in Haryana. The funny part is
Indian Land Records Modernisa- that the farmers do not get this, but
tion Programme (DILRMP) with a the consumers have to pay. If reforms
dashboard. The surveys/resurveys ensure choice to everyone, then why
have been conducted in 11.5 percent not the farmers are free to sell through
of the total villages and surprisingly whatever channel they want, without
this has not been undertaken in a having to mandatorily go through
single village of Punjab. Using that registered mandis?
data, the NCEAR developed land
records and service index. In the The government has adopted a
2020 rankings, MP, Odisha and Ma- conciliatory approach so far and
harashtra are at the top. Punjab and is willing to address the farmers’
Haryana are positioned at 16th and misgivings over the new laws. No
18th rank respectively. In 2017, West reform has ever happened out of a
Bengal abolished land revenue. With complete consensus. In majority of
no revenue records and imperfect the cases, this arises out of crisis,
surveys it would had been impossible and Indian agriculture too is passing
to estimate the number of farmers. through the same. It’s high time to
dump politics and emotions in the
Finally, the mandi fees were around backseat, and adopt a reasonable ap-
one percent during late 1960s, and proach which is the need of the hour
the money so collected was used to for the better future of the farmers n
Online Certificate Course in
Cooperative Law and Management
NCCE recently concluded Online Certificate Course in Cooperative Law
and Management held from 21 September to 31 October, 2020. 46 coopera-
tive employees working in different cooperative organizations attended this
course. Cooperative law, functional management and financial management
were the three subjects covered during this course. Two sessions were con-
ducted every day by various subject experts. Apart from open discussions
and clearing queries, faculty members also gave assignments to expose the
participants to the practical aspects of the subjects.
At the end of the course, an online examination was conducted through
Google Forms to evaluate the knowledge gained by the participants. Out of
46 participants, 31 cleared the examination. Mr. A.N. Kumar Sahu (Chhat-
tisgarh), Mr. S.K. Bisht (NCUI) and Mr. Dinesh Kr. Dixit (Chhattisgarh)
secured the first, second and third positions respectively. The participants,
who have not been able to clear the exam, will be given another chance to
reappear for online examination in the month of January, 2021 n
JANUARY 2021 The Cooperator 21
 I
ndia entered the period of eco-
nomic recession on 27th No-
vember, 2020, as its GDP (Gross
Domestic Product) contracted by
7.5% in the July-September quarter,
when compared to the same period
last year, according to National Sta-
tistical Office. It was reported that the
country’s GDP contracted by 23.9%
when compared to 5.2% growth
in the same period a year ago i.e.,
April-June. Two consecutive quar-
ters of contraction in GDP growth
(23.9%, and 7.5%) is considered as
recession, technically.
A recession occurs when the growth
of the economy falls below zero. The
growth is the change in the value
of goods and services produced in
a year or a quarter. A recession is
due to slowdown in the velocity of
money, decrease in investment, a
drop in demand for firms’ products,
lowering of returns on investments,
limited access to credit, shutdown
of industries or business houses, no
alternatives or substitutions, etc.
Agriculture has always been the
backbone of the Indian economy. It
has been providing employment to
around 65% of the total workforce
in the country. Indian agriculture has
not been much impacted by reces-
sion. It has shown growth of 3%.
When tsunami occurs one cannot
remain un-wet. Likewise, coop-
eratives too have to face the impact,
even if not severely. According to
Cornforth and others, 1988, finan-
cial crises may threaten cooperative
values, hinder democratic prin-
ciples in favor of market interests,
and foster a degeneration process,
which may lead to the failure of
such democratic organizations in
the long run. But the cooperatives in
India can reverse these statements
as culture and ethics of people are
unique. Further, we have to recall
the basic strength of cooperatives as
felt by Raiffeisen.
During agricultural depression in
1860s in Germany, a social reformer,
* Director, Institute of Cooperative Management, Hyderabad
22 The Cooperator JANUARY 2021
Recession and
Cooperatives in India
H.S.K. Tangirala
Cooperative model provides comparative advantages, but
there is no magic formula for success.
Friedrich Raiffeisen, provided emer-
gency food aid to hungry farmers and
their families, but then realized that
what they really needed was credit to
help them to modernize their methods
and gain access to markets for their
produce. He designed a new type of
savings and credit cooperative which
was enthusiastically taken up by the
farmers. The idea of rural coopera-
tive bank spread throughout main-
land Europe, and led to promotion of
supply and marketing cooperatives.
Together, they helped develop the
modern farm economy.
Recessions can do real damage to
banks via credit losses, declines in
the value of other investments, reduc-
tions in new business revenues, etc.
Even worse, the situation can spiral
downward as damage to banks cuts
into credit availability. Cooperatives
have to prepare themselves to get
ready to reduce its impacts, especially
the cooperative banks, i.e., urban co-
operative banks and state cooperative
banks. Though viable projects should
be funded; strict financial discipline is
a must. The banks may reduce inter-
est rates on deposits and emphasize
on quick and timely implementation
of government schemes. The coop-
erative banks have to cut the opera-
tional cost as they cannot cut the fixed
costs. No new recruitments shall be
invited, rather these institutions have
to depend more on technologies to
increase operational efficiencies. The
PACS have to find more new busi-
ness avenues and initiate local based
multi-services.
The housing cooperatives shall not
go for risky venture. Historically,
in times of a recession, households
attempt to preserve cash, postpone
travel plans, and delay big-ticket
purchases such as automobiles or
large electronics, instead of adopting
a ‘wait and watch’ approach which,
ultimately, perpetuates the negative
cyclical effect. As the members of
the housing cooperatives, they try
to keep funds in reserve, and they
do not have a tendency to spend
for huge investments. They rather
concentrate on daily needs.
In Sweden, after the price collapse of
1930, instead of cooperatives giving
way to state marketing boards, co-
operative federations took control of
farm credit, dairy, forestry, eggs, meat
and fruit, presided over by a strong
National Union of Swedish Farmers.
Another example is that of USA and
Canada. During depression when the
farm prices in the US and Canada
fell, a new type of cooperative was
devised that aligns farmer share-
ownership to delivery rights, thus
enabling farmers to go into food
processing. There are around 200 of
these ‘new generation’ cooperatives,
and they have raised the incomes of
farmers dramatically and revitalized
the local economies of North Dakota,
Minnesota and neighbouring states.
The severe recession experienced in
Finland in the early 1990s after the
Soviet Union collapsed led in part to
unemployment reaching more than
20% of the population. The response
was a ‘new wave’ of worker coopera-
tives promoted and supported by the
Ministry of Labour and the Finnish
Cooperative Movement which led
to over 1200 labour cooperatives
designed to get unemployed people
back into work. The same thing may
be replicated in India also where the
labour force has faced the problems
during COVID-19.
There will be less impact on agri-
cultural based cooperatives as they
are fulfilling the basic needs of
people. Cooperative businesses sta-
bilize communities because they are
community-based business orga-
nizations. They distribute, recycle,
and multiply local expertise and
capital within a community. The co-
operatives by nature pool in limited
resources to achieve their simple
objectives for which they exist. The
cooperatives enable theirs owners
to generate income, create jobs, ac-
cumulate assets, provide affordable
goods/services, develop human
capital, and create social capital for
economic independence.
Agricultural cooperatives shall go
for processing and value addition,
where they can earn more profits
and can reach new markets.
Labour contract cooperatives are
mostly affected by recession. The
labour cooperatives have to give
training to their members on dif- even higher than that predicted by
ferent skill-based activities so as the World Bank.
to take contracts easily. Not in the
recession, even in the non-recession However, the cooperatives have
period also, labour cooperatives to use this package effectively, es-
have not shown much interest on pecially agriculture and marketing
skill development. They remained cooperatives by setting up processing
unskilled most of the time. Efforts units which increase more returns to
are required to use skill develop- the farmers. An action plan of all the
ment institutions set up by Govern- cooperatives is indispensable for their
ment of India. Based on a study, the preparedness in taking up suitable
following table indicates whether action in the wake of changes that are
there is positive or negative impact taking place in the activities of the so-
on various types of cooperatives. cieties. The cooperatives have to find
innovative opportunities which suit
The Atmanibhar Bharat stimulus the local needs of the members of the
package announced by Government cooperatives. The cooperative model
of India was referred by financial provides comparative advantages, but
experts as 1% of GDP which is less there is no magic formula for success.
when compared to other countries. The hard work put in by the coopera-
In the centre’s original stimulus tives, made the Green Revolution and
package, provisions were made for White Revolution successful which
food rations and some monetary was made possible with a vast network
support was provided to the nation’s and reach of the cooperatives in India.
worst-affected communities, but Likewise all the cooperatives have to
the absence of a dedicated social work hard, change business models,
welfare net means that the actual diversify their activities to make the
slump in GDP growth could be movement surge ahead.
table
Urban Cooperative Bank (UCBs) Marginal negative impact
Tribal Cooperatives No negative impact
Toddy Tappers Cooperative society No negative impact
State Cooperative Marketing Federations No negative impact
Sheep and Goat Cooperative society No negative impact
Rural Irrigative Cooperatives/water users Cooperatives No negative impact
Rural Electric Cooperative Society No negative impact
Primary Dairy Cooperative Societies No negative impact
Primary Agricultural Cooperative Societies (PACS) No negative impact
(Short Term Lending Function)
Primary Agricultural Rural Development Cooperative Marginal negative impact
societies (Long Term Lending Function)
Mandala Mahila Sahakata Samakya Marginal negative impact
Labour contract Cooperative society negative impact
Industrial Cooperative society negative impact
Handloom Weavers Cooperative Societies (HWCS) negative impact
Fruit and Vegetable Cooperative society No negative impact
Fishery Cooperative Societies (FCS) No negative impact
Famers Producers Organisation (FPOs) registered No negative impact
under Cooperative societies Act
Employees Cooperative society No negative impact
District Cooperative Milk Unions No negative impact
District Cooperative Marketing Society (DCMS) No negative impact
District Cooperative Central Bank (DCCB) Marginal negative impact
Cooperative Joint farming Society No negative impact
Consumer cooperative society No negative impact
Washerman Cooperative society No negative impact
Handicraft Cooperatives negative impact
Housing Cooperative society negative impact
JANUARY 2021 The Cooperator 23
 The world is experiencing unprec-
edented challenges from COVID-
19 — the coronavirus pandemic
— that could erase development
gains for many countries. The
pandemic has profoundly impacted
human capital, including lives,
learning, basic well-being, and
future productivity. The crisis has
also severely tightened external
financing conditions for countries
across the income spectrum,
disrupting trade, supply chains,
and investment flows.

On the legal side, the Courts

have invented disposal of cases
through video conferencing and
the judicial officers and advocates
have becomes tech savvy. The
pandemic situation has not damp-
ened the disposal of cases even
in the field of co-operation. The
Supreme Court has continued its
trend setting judgments. Perhaps
for the first time a Constitution
Bench was constituted to decide
the applicability of the SARFAESI
Act on co-operative banks and the
Court answered in affirmative.
The 44 year legal battle involving
NCDC and Income Tax Depart-
ment was given a quietus and the
Court provided the much needed
relief to NCDC. Few more illumi-
nating decisions have also been
set out by the Apex Court in 2020
in co-operative arena. This article
brings out the quintessence of these
judgments.
Whether employees’ dues take
precedence over the claim of
the secured creditor?
Vainganga Sahakari Sakhar Karkha-
na Ltd. (hereinafter ‘Karkhana’)
had obtained credit facilities from
the Maharashtra State Co-operative
Bank Ltd. and mortgaged its proper-
ties in return. When it defaulted on
the repayment of loan, the appellant-
Bank initiated recovery proceedings
under S. 13(2) of the SARFAESI
Act. Later the appellant-Bank took
LAWS SETTLED BY
SUPREME COURT ON
CO-OPERATIVES IN 2020
R. Muralidharan*
physical possession of the mort-
gaged properties of the Karkhana as
per S.13(4) of the SARFAESI Act.
Owing to its poor financial condi-
tion, the Karkhana issued a notice
to its employees directing them to
proceed on leave without salary.
This was challenged by representa-
tives of the Karkhana employees
under the Maharashtra Recognition
of Trade Unions and Prevention of
Unfair Labour Practices Act, 1971
(‘MRTU & PULP Act’, for shot).
The Industrial Court directed the
Karkhana to pay the unpaid salaries
on top priority basis.
The issue that arises for consideration
in this appeal is whether employees’
dues can take precedence over the
claim of the secured creditor in
respect of the proceeds from the sale
of secured assets of the Karkhana
under the SARFAESI Act. Given
that the Karkhana was a co-operative
society registered under the Maha-
rashtra Co-operative Societies Act,
1960, S. 167 is squarely applicable.
The next question to be considered
is whether the employees’ dues can
take priority over other claims by
virtue of being recoverable as arrears
of land revenue.
When a composite reading of the
sale certificate and the sale letter
is undertaken, it is revealed that
though the purchaser had accepted
all encumbrances on the prop-
erty, this did not include employ-
ees’ dues in view of the specific
undertaking by the appellant-Bank
that it would pay them. Hence, it
can be concluded that the parties
had agreed to the Bank paying the
employees’ dues and the subsequent
purchaser settling other liabilities,
including statutory liabilities. The
appeal was disposed with a direc-
tion that the appellant-Bank must
pay the employees’ dues out of the
sale proceeds from the auctioned
property. All other dues in respect
of the secured property, including
any unpaid statutory dues in rela-
tion to employees (provident fund,
gratuity, bonus, etc.) shall be paid
by the 5th respondent. The appeal
was disposed accordingly.

* Puducherry Civil Service Officer (Retired), Director, Catalyst [The Training People]

24 The Cooperator JANUARY 2021

Verification of members
should be done expeditiously
The Registrar of Co-operative Soci-
eties, seeking a modification of the
directions issued by the Division
Bench of the High Court of Delhi,
has moved the Supreme Court in
Registrar of Co-operative Societies
vs. Federation of Progressive So-
cieties, Civil Appeal Nos. 429-430
of 2020 dated 20.1.2020. Besides
the order, there is also a challenge
to a subsequent order dismissing an
application for recall of the earlier
order.
The issue which has been raised
in the present appeals pertains to
the verification of the members of
fifteen co-operative societies which
are represented by the Federation of
Progressive Societies, the respon-
dent to these proceedings. In a judg-
ment rendered by the Court in Delhi
Development Authority vs. Bank-
mens Co-operative Group Housing
Society Limited, (2017) 7 SCC 636
it was observed that verification of
the members must be done even at
the stage before the land is allotted
to the society. The High Court ob-
served that rejection of membership
or application for enrolment for
technical reasons, after payment of
the cost of land and construction is
an agonizing and tormenting ordeal.
The inquiry under Rule 90 would
be undertaken and carried out at the
appropriate stage.
It was submitted that that the RCS is
fulfilling the mandate of conducting
a verification of members and there
should be no substantive objection
on the part of the respondent to
this exercise being completed. The
RCS would complete the process
of verification within a period of
two months, immediately after the
elections to the Legislative Assem-
bly are completed by the middle of
February 2020. Having regard to the
above factual background, the sub-
mission which has been made by the
RCS for carrying out the process of
verification is in order. At the same
time, verification cannot be allowed
to linger on for an intermittently
long period and must be completed
within a time bound schedule.
If any facilitative direction is re-
quired hereafter for implementing
this order, it would be open to either
of the parties to move the High Court
for appropriate directions. These
directions shall be over and above
which have already been issued by
the High Court. The appeals are ac-
cordingly disposed of.
Payment of huge damages by a
consumer co-operative store
will result in precarious
financial position
The award damages passed against
the appellant co-operative store
by the trial Court, as confirmed by
the High Court of Madras, is under
challenge in The Periyar District
Consumer Co-operative Wholesale
Stores Ltd. vs. B. Balagopal (Died)
Through LRs. and others, Civil
Appeal No. 1893 of 2020 dated
2.3.2020.
JANUARY 2021 The Cooperator 25
 The only issue for consideration is
with regard to the liability or oth-
erwise of the defendant to pay the
damages as sought by the plaintiffs
and in that regard whether the claim
as put forth by the plaintiffs and
award by the trial Court is justified.
It was contended by the appellant
that in the earlier round of litigation,
when an application was filed by the
plaintiffs in the eviction proceedings
an understanding had been reached
and the defendant had accordingly
agreed to vacate the premises in six
months and have adhered to such un-
dertaking and vacated the premises
during November 2003. In such event
merely because liberty was reserved
in the said proceedings, instituting
a suit of the present nature seeking
higher damages would not be justi-
fied more so in a circumstance when
the High Court in the earlier instance
had fixed a higher rent for the said
period of six months.
In the present facts, during the
course of consideration of this
appeal what appealed to the Court
is also that the appellant is a district
consumer co-operative wholesale
stores and the premises had been
taken on rent for its activity and it
is not a business activity in the strict
sense of the term but is co-operative
activity for the benefit of members
who are shareholders. The defen-
dant is a consumer co-operative
wholesale store and has already
vacated after paying the enhanced
amount ordered by the High Court.
If substantial unplanned expendi-
ture is heaped on the society for the
retrospective period it would be put
in a financially precarious position.
In the result, the judgment and decree
of the trial Court and affirmed by the
High Court stands modified holding
that the defendant shall pay to the
plaintiff the sum of Rs.17,50,000
being the lump sum damages. Since
the sum of Rs.10 lakh has been paid
by the defendant to the plaintiffs, the
balance of sum of Rs.7,50,000 shall
be paid. The appeal was allowed to
the above extent.
26 The Cooperator JANUARY 2021
When revival of Super Bazar is
foiled, refund of investment
can only be as per liquidation
procedures
The Central Registrar of Co-oper-
ative Societies passed an order for
the winding up of Super Bazar. The
order of winding up was upheld by
the Appellate Authority. Finding
that as a multi-state co-operative
society, the institution had not sub-
served the interest of the general
public, the Appellate Authority held
that the Central Government was
under no obligation to continue
infusing funds to keep Super Bazar
afloat without the prospect of any
returns. The writ petitions before the
High Court of Delhi were dismissed
as a consequence of which the order
of liquidation was upheld. The
Supreme Court granted opportuni-
ties to the workers to bring forth an
entity with whose assistance Super
Bazar could be revived.
The Writers and Publishers Private
Limited (WPL) submitted a revised
bid together with a business plan.
The bid submitted by WPL en-
visaged an investment by it of
Rs.504 crore. The Court ordered
that pending the revival of Super
Bazar, the order of winding up was
to remain suspended. Moreover,
as and when the scheme of revival
came into force, it would substitute
the order of winding up.
It is noted that out of the proposed
infusion of Rs. 504 crore under the
revival plan, WPL had brought in
an amount of Rs.102 crore towards
share capital but the status of the
infusion under the other two heads
(working capital and revival funds)
was unknown. There was a serious
impasse arising out of the non-
implementation of the revival plan.
The Central Government submitted
that if WPL were to withdraw from
the revival process, Super Bazar
ought to be placed under liquidation
and all claims would be duly inves-
tigated by the Central Registrar. The
Central Government, as a creditor
of Super Bazar, had an outstanding
loan amount of Rs. 68.51 crore. Ac-
cording to WPL, it was entitled to a
refund of the entire investment to-
gether with interest at the rate of 6%
per annum, subject to the deduction
of the profits made during the period
when the arrangement subsisted.
The question before the Supreme
Court in the Contempt Petition in
M/s. Writers and Publishers Pvt.
Ltd., vs. Dr. A.K. Mishra, Official
Liquidator, 2020 (6) SCALE 208
is whether the WPL is entitled for
the claim dehors of the liquidation
provisions of the Multi-State
Co-operative Societies Act.
Chapter X of the Multi-State Co-
operative Societies Act deals with
the winding up of multi-state co-
operative societies. Rule 28 of the
Multi-State Co-operative Societies
Rules lays down the procedure to
be adopted by the liquidator. Rule
29 provides for the order of prior-
ity in accordance with which the
assets of a multi-state co-opera-
tive society shall be applied in the
payment of liabilities. The Multi-
State Co-operative Societies Rules
in particular, indicate the procedure
to be adopted by the liquidator and
the manner in which the assets are to
be applied. The order of priority is
spelt out. To allow the claim of WPL
to be refunded its entire investment
amount, the major part of which
took place through the subscription
of share capital, would essentially
place it outside the purview of the
winding up proceedings. Accepting
the claim would enable it to take
away moneys overriding the order
of priorities laid down by the Multi-
State Co-operative Societies Rules.
The plea of WPL to receive pay-
ments at the present stage would
confer on it a preference and prior-
ity which would be in the teeth of
the statutory provisions contained
in the Multi-State Co-operative
Societies Act. The liquidator shall
evaluate the claim as determined by
the verification report by the CAG
in terms of the priorities for the
payment of claims as envisaged in
the Act and the associated rules. The
liquidator is also directed to treat the
amount outstanding to the EPFO in
terms of the first priority which is
created by the provisions of S. 11(2)
of the EPF Act. The liquidator shall
also consider the claim of the Union
Government. The contempt peti-
tions were dismissed.
A particular provision cannot
be picked up and interpreted
to defeat another provision
made in that behalf under the
statute
This appeal in Managing Director,
Chhattisgarh State Co-operative
Bank Maryadit vs. Zila Sahkari
Kendriya Bank Maryadit and others,
2020 (5) SCJ 569: (2020) 6 SCC
411: (2020) 3 MLJ 195: LNIND
2020 SC 185 arose from the judg-
ment of a Division Bench of the
High Court of Chhattisgarh which
held that the appointment made by
the appellant as the Chief Executive
Officer of the first respondent bank
and its subsequent ratification by the
Registrar of Co-operative Societies
were without the authority of law.
Consequently, the decision of the ap-
pellant was held to be not binding on
the first respondent. The appellant is
the apex body of co-operative banks
in the State of Chhattisgarh. The first
respondent is a District Central Co-
operative Bank which is governed
by the provisions of the Chhattisgarh
Co-operative Societies Act, 1960.
S. 49-E of the Chhattisgarh Co-
operative Societies Act, 1960 deals
specifically with the appointment
of Managing Directors and CEOs
in certain circumstances. S. 49-E
(1) deals with the appointment of
the Managing Director of an apex
society. Sub-section (2) deals with
the appointment of the Managing
Director (who shall be the CEO) of
central societies. While introducing
clauses (a) and (b) into sub-section
(3) of S.54 by the 2016 Amendment
Act, the legislature has nonetheless
left intact the provisions of S.49-E.
S.49-E(2) stipulates that the CEO
shall be appointed from among the
officers of the cadre maintained
under S.54, where such cadre has
been constituted. S.49-E is a provi-
sion governing apex and central
societies to whom financial assis-
tance has been extended by the State
Government in the forms stipulated
therein. The appointment of a CEO
of central society governed by S.49-
E(2) has to be from the officers of the
cadre maintained under S.54. Sig-
nificantly, sub-section (2) of S.49-E
contains a non-obstante stipulation.
As a consequence, notwithstanding
the 2016 Amendment Act, the CEO
of a central society falling within
the description of sub-section (2)
of S. 49-E has to be appointed from
among the officers of the cadre
maintained under S. 54, if such cadre
has been constituted. This is evident
in the notification issued by the State
Government in exercise of the power
conferred upon it which stipulated
that the first respondent (as a district
central co-operative bank) is obligat-
ed to accept and appoint the officer
deputed by the appellant (as the apex
society) as the CEO. The Court must
ensure that neither provision in S.
49-E(2) nor Ss. 54(3)(a) and (b) is
reduced to a dead letter of law.
The High Court was in error in
holding that in the matter of an
appointment of the CEO, the apex
body or the central society has no
power or role to play. In exercise
of the power conferred by S. 54(3),
the State Government issued a no-
tification specifying that central co-
operative banks were obligated to
employ officers, according to their
availability, only from the cadres
created by the State co-operative
bank. The seventh respondent is not
an officer from the cadre maintained
by the appellant. Consequently,
the action of the first respondent
in seeking to appoint the seventh
respondent as the CEO is not sus-
tainable in law. The appointment of
the sixth respondent as CEO was
ratified by the Registrar of Co-oper-
ative Societies and accepted by the
board of the first respondent. Resul-
tantly, the appeal is allowed and the
impugned judgment of the Division
Bench is set aside. The order of the
learned single Judge is restored for
the aforesaid reasons.
Chronic defaulting members
deserve expulsion from
membership
Khowab Housing Co-operative
society was formed with the objec-
tive to construct 48 flats for its 48
members. The members of the
society were required to deposit a
sum of Rs.3.86 lakh each towards
the cost of land, etc., which was de-
posited by all the 48 members. After
the construction of the flats, the total
cost of each flat came to Rs.24 lakh
and all the members were required
to deposit the said amount. All the
members, except the six petition-
ers, were allotted the flats and have
deposited the balance amount. Six
petitioners had deposited only the
initial amount of Rs.3.86 lakh each
and nothing more. As the petition-
ers failed to make the deposit, the
society gave one last opportunity
to the defaulting members to clear
the dues, failing which they would
be expelled from the society. Since
the petitioners failed to deposit the
required amount within the speci-
fied time, the board of the society
expelled the petitioners from the
membership. When revision petition
was filed, further time was granted to
them, but they failed again to make
payment. Consequently, the revi-
sion petition stood dismissed. The
High Court granted further oppor-
tunity of one month’s time to them,
when the petitioners challenged the
dismissal of revision petition. Since
no payment was forthcoming, the
writ petitions were dismissed.
Aggrieved by the order of the High
Court, the petitioners preferred
SLP in the Supreme Court in SR
Jalaluddin and others vs. The State
of West Bengal and others, 2020
(7) SCALE 124. The contention of
the petitioners is that the cost of the
JANUARY 2021 The Cooperator 27
 flats was arbitrarily enhanced and
that though, after the order of the
High Court, some of the petitioners
had deposited certain amount (not
the demanded amount) directly in
the bank account of the society, the
same was returned to them. It was
submitted by the society that the
six flats have already been allotted
to six other members, who all have
deposited the requisite amount and
have taken possession of their re-
spective flats.
It is clear that besides the initial
amount of Rs. 3.86 lakh, the petition-
ers did not deposit any further amount
and kept disputing the demands raised
by the society. The order expelling
the petitioners from the membership
of the society was passed way back
in May, 2015, which was affirmed by
the Registrar, Co-operative Societies,
West Bengal as well as the Principal
Secretary to the State Government,
and the writ petition filed by the
petitioners was also dismissed. On
each occasion, the petitioners were
granted time to deposit the balance
amount, which they did not comply.
They have not even complied with
the order passed by the Court. After
28 The Cooperator JANUARY 2021
the expiry of time granted by the
Court to the petitioners to deposit
the balance amount, the order of the
society expelling the petitioners had
come into effect and thereafter the six
flats have already been allotted to six
different persons, who have deposited
the requisite amounts. Such being the
factual background, the prayers made
by the appellants do not deserve to be
granted.
SARFAESI Act applies to Co-
operative Banks
The quintessence of the whole issue
centers around before the Constitu-
tion Bench of the Supreme Court in
Pandurang Ganpati Chaugule vs.
Vishwasrao Patil Murgud Sahakari
Bank Ltd., (2020) 9 SCC 215: 2020
(7) SCALE 250 is the scope of the
legislative field covered by Entry 45
of List I, viz., ‘Banking’ and Entry
32 of List II of the Seventh Schedule
of the Constitution of India, conse-
quently power of the Parliament to
legislate. The central issue that has
stemmed in these appeals is the
applicability of Securitization and
Reconstruction of Financial Assets
and Enforcement of Security Inter-
est Act, 2002 (hereinafter referred to
by the acronym ‘SARFAESI Act’)
to the co-operative banks.
The following substantial question
of law and interpretation of enact-
ment arose out of this judgment:
(i) whether ‘co-operative banks’,
which are also co-operative societ-
ies, are governed by Entry 45 of
List I or by Entry 32 of List II of the
Seventh Schedule of the Constitu-
tion of India, and to what extent?,
(ii) whether ‘banking company’ as
defined in S. 5(c) of the BR Act
covers co-operative banks registered
under the State Co-operative laws
and also multi-State co-operative
societies?, (iii) whether co-oper-
ative banks both at the State level
and multi-State level are ‘banks’
for applicability of the SARFAESI
Act?, and (iv) whether provisions
of S. 2(c)(iva) of the SARFAESI
Act on account of inclusion of
multi-State co-operative banks and
notification dated 28.1.2003 notify-
ing co-operative banks in the State
are ultra vires?
Answering the questions, it was
held that –
• The co-operative banks registered
under the State legislation and multi-
State level co-operative societies
registered under the MSCS Act with
respect to ‘banking’ are governed
by the legislation relatable to Entry
45 of List I of the Seventh Schedule
to the Constitution.
• The co-operative banks run by the
co-operative societies registered
under the State legislation with
respect to the aspects of ‘incor-
poration, regulation and winding
up’, in particular, with respect to
the matters which are outside the
purview of Entry 45 of List I of
the Seventh Schedule are governed
by the said legislation relatable to
Entry 32 of List II of the Seventh
Schedule.
• The co-operative banks involved
in the activities related to banking
are covered within the meaning of
‘Banking Company’ defined under
S. 5(c) read with S. 56(a) of the BR
Act which is a legislation relatable
to Entry 45 of List I. It governs the
aspect of ‘banking’ of co-operative
banks run by co-operative societies.
The co-operative banks cannot carry
on any activity without compliance
of the provisions of the BR Act and
any other legislation applicable to
such banks relatable to ‘banking’ in
Entry 45 of List I and the RBI Act
relatable to Entry 38 of List I of the
Seventh Schedule.
• The co-operative banks under the
State legislation and multi-State
co-operative banks are ‘banks’
under S. 2(1)(c) of the SARFAESI
Act. The recovery is an essen-
tial part of banking; as such, the
recovery procedure prescribed
under S. 13 of the SARFAESI Act,
a legislation relatable to Entry 45
of List I of the Seventh Schedule,
is applicable.
• The Parliament has legislative
competence under Entry 45 of List I
of the Seventh Schedule to provide
additional procedures for recovery
under S. 13 of the SARFAESI Act
with respect of co-operative banks.
The provisions of S. 2(1)(c)(iva)
of the SARFAESI Act addition ‘ex
abundanti cautela’ a multi-State
co-operative bank is not ultra vires
as well as the notification dated
28.1.2003 issued with respect to the
co-operative banks registered under
the State legislation.
Unnecessary litigation
initiated by the Revenue caused
delayed justice to NCDC
The National Co-operative Devel-
opment Corporation (NCDC) was
established under the National Co-
operative Development Corporation
Act, 1962 (NCDC Act) and it func-
tions under S. 9 of the NCDC Act
to propel loans or grant subsidies
to the State Governments which is
helpful in financing co-operative
societies. It likewise provides loans
and grants legitimately to both Na-
tional level co-operative societies
and State level co-operative societ-
ies, the latter on the guarantee of
State Governments. The funding to
the NCDC comes by way of grants
and loans received from the Central
Government which is enshrined
in S. 12 of the NCDC Act and for
this the Corporation is mandatorily
required to maintain a fund which
is called the National Co-operative
Development Fund under S. 13 of
the Act, where all the awards and
advances received from the Central
Government is credited. Though
NCDC is an intermediary or passes
through entity, it is a distinct juridi-
cal entity.
The issue which had arisen in Na-
tional Co-operative Development
Corporation vs. Commissioner of
Income Tax, Delhi-V, Civil Appeal
Nos.5105-5107 of 2009 dated
11.9.2020 was that whether the com-
ponent of interest income earned on
the funds received under S. 13(1)
and disbursed by way of grants to
National or State level co-operative
societies is eligible for a deduction
for determining the taxable income
of the Corporation.
The Court is of the view that the
grants made by the appellant-
Corporation will undisputedly fall
within its authorized business ac-
tivities and the advancing of grants
from the source of interest will be a
revenue expense because it had not
resulted in the acquisition of capital
assets by any Corporation, therefore,
the same will be adjustable under
S. 37(1) of the IT Act. Though, the
interest income arises on account of
the funds received may not be uti-
lized for a certain period but instead
of lying idle, it is put in the fixed
deposits, and the income generated
from it again applied to the disburse-
ment of grants and loans.
The issue of dispute raised by the
appellant-Corporation is related to
the grants only and not to the loans
because grants made on the interest
generated would never come back
and hence the same is adjustable
against the business expenses. Ad-
ditionally, the purpose for which this
Corporation has been established is
to provide financial support to the
State Government and co-operative
societies by way of providing loans
or grants. This very nature of act
comes under the business activity
and the income generated in the form
of interest on the unutilized capital is
the nature of business income.
The Apex Court concluded that it
was unable to agree with the find-
ings arrived at by the AO, ITAT and
the High Court albeit for different
reasons and concur with the view
taken by the CIT (A). It is left to the
Court to strike the final blow and
allow the appeals, while noticing with
regret the inordinately long passage
of time and the wastage of judicial
time on deciding who is principally
right when in either eventuality it
benefits the Central Government.
The anguish of the Court is aptly ex-
pressed in the prologue of the judg-
ment in the following words: Which
pocket of the Government should be
enriched has taken forty-four (44)
years to decide – a classic case of
what ought not to be!
JANUARY 2021 The Cooperator 29
 rhu —f’k dkuwuksa ij gaxkek cjik gSA
laln esa cgqer ls ikfjr bu dkuwuksa
dk fojks/k dj fdlku usrkvksa us
vkanksyu dk u;k bfrgkl jp fn;kA
fdlku vkanksyu dh vkM+ esa dsaæ
ljdkj dks ?ksjus ds fy, foi{k dks
egRoiw.kZ jktuSfrd vL= feyk gSA
fygktk foi{k dk dksbZ usrk ekSdk
xaokus dks rS;kj ugha gSA

jktuSfrd nyksa us vkanksyudkfj;ksa ds

ihB ihNs [kM+s gksdj lM+d dks laln
ls T;knk egRoiw.kZ cuk fn;k gSA
yksdra= esa ;g fnypLi fLFkfr gSA
lÙkk esa jgrs gq, tks djks] foi{k esa
vkrs gh mldk fojks/k “kq# dj nksA
jktusrkvksa ds çksRlkgu ij Hkh’k.k
egkekjh ds Hk; vkSj dM+kds dh BaM
ds chp gtkjksa fdlkuksa us rhu rjQ
ls fnYyh dks ?ksj fy;k gSA ekSle
o vU; otgksa ls /kjuk LFky ij
lkB ls T;knk fdlkuksa ds fu/ku dh
nq[knk;h [kcj us dsaæ ljdkj dh
Nfo dks gB/kehZ cuk j[kk gSA tksj
vktekbZ”k ds chp fdlkuksa us dsaæ
ljdkj ds nkarks yksgs ds pus pcok
j[kk gSA
iatkc ls pys fdlkuksa us gfj;k.kk]
jktLFkku vkSj if”peh mÙkj çns”k
ds usrkvksa dk lkFk ysdj jkt/
kkuh fnYyh ços”k ds rhu egRoiw.
kZ }kj fla/kq cksMZj] fVdjh cksMZj vkSj
xkthiqj cksMZj ds jkLrs iwjh rjg ls
tke dj fn;k gSA vkS|ksfxd fV~ou
flVh xqM+xkao vkSj uks,Mk ls fnYyh
vkuk tkuk nqxZe gSA eq[;ea=h ;ksxh
vkfnR;ukFk vkSj euksgj [kêj ljdkj
dh l[r Nfo vkanksyudkfj;ksa ds
bjkns ij ikuh Qsjus esa foQy jgh
gSA jkt/kkuh dh lhek ij cSBdj
fdlku usrk fur u, usjsfVo x<
jgs gSaA bosaV eSustesaV okyksa dh
pkanh dV jgh gSA lk<s Ng lky
esa igyh ckj ç/kkuea=h ujsUæ eksnh
dh Nfo dks MsaV djus dh çHkkoh
dksf”k”k gksrh utj vk jgh gSA [kqn
* ofj’B i=dkj
lgdkfjrk gS
fdlku vkanksyu dk funku
vkyksd dqekj*
dks jk’Vªh; Hkkouk ls vksrçksr crkus
okyh ljdkj ij dksjiksjsV txr ds
fgriks’kd gksus dk bYtke ljklj
e<rk tk jgk gSA foKku Hkou dh
cSBdksa esa fdlku usrkvksa dh ftn ds
vkxs dsaæh; ea=h ykpkj utj vkrs
gSasA ljdkj dh vksj ls ckjackj —f’k
lq/kkj dkuwu dks —f’k ls vkenuh dks
nksxquh djus ds vfHk;ku dk fgLlk
crkus dh dksf”k”k foQy gksrh jgh
gSA fdlku usrk ,dLoj esa ,e,lih
dks dkuwuh ntkZ nsus vkSj laln ls
ikfjr dkuwu dks [kRe djus dh ekax
ij MVs gSaA
vkanksyudkfj;ksa ls laokn esa ljdkj
dks fujarj eqf”dyksa ls nks pkj gksuk
iM+k gSA bl fodV ?kM+h esa f”kír
ls etcwr laokn lw= dh deh
eglwl dh tk jgh gSA ljdkj ds
fy, lgdkjh usrk çHkkoh laokn lw=
cu ldrs Fks ysfdu detksj gksrs
lgdkjh vkanksyu ds chp ls vkt
bdcky okyk ,d Hkh ,sls usrk dk
psgjk utj ugha vk jgk ftldh
vkokt ij fdlku ljdkj dh ckr
lquus rd dks jkth gks ikrsA
jk’Vªh; jkt/kkuh fnYyh dks fdlkuksa
dh ?ksjkcanh ls cpus ds fy, dsaæ
ljdkj us “kq# ls tks Hkh pky pyh]
vkanksyu dh ckjhfd;ksa ls okfdQ
oke i`’BHkwfe ds usrkvksa us lQy ugha
gksus fn;kA ljdkj fnYyh vk jgs
fdlkuksa dks ckrphr ds fy, cqjkM+h
ds foLr`r eSnku esa cqykuk pkgrh Fkh]
ysfdu ,slk gks u ldkA
dsaæ ljdkj dks bl eqf”dy ?kM+h
ls mckjus esa lgdkjh usrk dke vk
ldrs FksA bl vkM+s oä ij lgdkjh
usrkvksa ds vlj ds vHkko dh ckr
ljdkj dks t#j ;kn vkbZ gksxhA
lgdkfjrk ls tqM+s yksx mEehnoku

30 The Cooperator JANUARY 2021

gSa fd eqf”dy ls mcjus ds ckn
lgdkjh vkanksyu ls tqM+h dfe;ksa dks
nwj djus dk ç;kl fd;k tk,xkA
lkS lky ls T;knk iqjkuh lgdkfjrk
chrs “krkCnh ds vkf[kjh n”kd rd
Hkkjrh; —f’k dk egRoiw.kZ Vwy jgh
gSA ysfdu vkjksi gS fd fdlku lewgksa
dh ckxMksj mn~eeh lgdkjh usrkvksa
ds gkFkksa esa jgh ysfdu ljdkjh enn
ls d‚iksjsV txr dks çksRlkgu nsus
ds pDdj esa lgdkfjrk fujarj ihNs
NwVrh tk jgh gSA rRdkyhu foÙk
ea=h ih fpancje us 1996 dh ctV
esa lgdkjh miØeksa dks VSDl NwV
ds nk;js ls nwj dj fn;kA tehuh
Lrj ij bldk dkQh fojks/k gqvkA
ysfdu foxr iPphl lkyksa ls VSDl
NwV dh O;oLFkk dks iquZcgky djus
dh ckr dks ,su dsu çdkjsu Vkyk
tkrk jgk gSA bruk gh ugha] lgdkjh
vkanksyu dks ijoku p<kus ds fy,
2012 esa laln us loZlEefr ls 97 oka
lafo/kku la”kks/ku ikfjr fd;kA blds
rgr lgdkfjrk dks vke Hkkjrh;ksa ds
ekSfyd vf/kdkj cukus dh ckr gSA
ysfdu xgjh lkft”k ds rgr bl
vfHk;ku dks fØ;kfUor gksus ls jksd
fy;k x;kA ;g dkuwu vkt ukS lky
ckn Hkh ykxw gksus ds fy, lqçhe dksVZ
dh ngyht ij lquokbZ ds bartkj
esa cSBk iM+k gSA vktknh ds ckn ls
gh ns”k dh —f’k lgdkjh O;oLFkk ds
rgr iYyfor iqf’’kr gksrh jgh gSA
Hkkjr dks fodkl dk ia[k yxkus okyh
gfjr Økafr] nqX/k Økafr o moZjd
Økafr “kq#vkr ls gh lgdkfjrk ds
ewyHkwr fl)kar ij vk/kkfjr jgh gSA
lgdkfjrk pykus okys ges”kk ls [kqn
dks ljdkj dk fgLlk ekurs jgs gaSA
muls ljdkj ds eqyktksa dk fujarj
laokn cuk jgrk gSA tkfgj rkSj ij
lgdkjh usrkvksa dks fu:Nan fdlku
usrkvksa dh rqyuk esa le>kuk cq>kuk
ges”kk ls vklku jgrkA
—f’k vkanksyu dh fodjkyrk dk
urhtk gS fd usjsfVo x<us esa ekfgj
usrkvksa us ,d iwjh dkSe dks dsaæ
ljdkj ds f[kykQ [kM+k dj fn;k
gSA cM+h pkykdh ls —f’k dkuwuksa ds
tfj, ljdkj ij fdlkuksa dh rqyuk
esa dkjiksjsV txr ds fgriks’kd gksus
dk bYtke x< fn;k x;k gSA bl
bYtke dks lgdkjh usrk çHkkoh
fMVjtsaV ls /kksus esa l{ke FksA ysfdu
vkanksyu ds eSnku esa ,d Hkh lgdkjh
usrk utj ugha vkrkA fojks/k dh
ckxMksj ekvksoknh i`’BHkwfe ds fdlku
usrk M‚-n”kZuiky] iwoZ lhih,e lkaln
gkth gUuku ekSyk] ;ksxsaæ ;kno tSlksa
ds gkFk esa gSA muds “kksj vkSj gaxkes
ds chp dsaæh; ea=h ujsUæ flag rksej
vkSj ih;w’k xks;y dh vksj ls —f’k
lq/kkj dkuwu ds fdlku fgriks’kd
dh ckr crkus dh dksf”k”k dks nck;k
tkuk ykfteh gSA vkanksyu ls flQZ
fnYyh dks gh eqlhcr ugha gS] cfYd
iatkc esa fjyka;l eksckby ds VkolZ
vkSj LVkslZ dks O;kid uqdlku
igqapkus dh [kcj [krjukd gSA ;g
vjktdrk QSykus dh ckgjh lkft”k
dk fgLlk gks ldrk gSA blls
cpus ds fy, çeq[k vkS|ksfxd ?kjkus
fjyka;l o vMkuh xzqi dks fdlkuksa
ds gd esa lkoZtfud vihy djuh
iM+hA uqdlku dks jksdus ds fy,
mPp U;k;ky; dh “kj.k esa tkuk
iM+kA vnkyr esa iatkc ljdkj dks
d‚jiksjsV ?kjkuksa ds fcØh dsaæksa dks
cpkus ds fy, lqj{kk cyksa dks mrkjus
dk Hkjkslk nsuk iM+kA
lgdkjh usrkvksa dh jk; gS fd fdlkuksa
ls laokn djus esa vk jgs fnDdr
dh cM+h otg lgdkjh vkanksyu dh
f”kfFkyrk gSA vxj —f’k lq/kkj dks
xfr nsus esa lgdkjh laLFkkvksa dks
rkdroj vkStkj cuk;k x;k gksrk]
rks lwjrsgky vyx gksrhA ;g fdlku
vkanksyu ljdkj ls csgrj laokn
djus esa l{ke lgdkjh usrkvksa dh
xSjekStwnxh dh otg ls eqf”dy dk
lcc cuk jgkA
gky ds fnuksa esa —f’k mRiknd lewg
¼,Qihvks½ dk pyu tksj ij gSA
ukckMZ vkSj ,u,lMhlh tSlh ljdkjh
laLFkkvksa us ,Qihvks [kM+k djus dk
vfHk;ku pyk j[kk gSA bls —f’k
mRiknu esa yxh iqjkru lgdkjh
O;oLFkk ds lkekukarj [kM+k fd;k tk
jgk gSA ,Qihvks —f’k dks d‚jiksjVs
dYpj ds djhc ys tkrh gS] tcfd
xzkeh.k ifjos”k vk/kkfjr Hkkjrh; —f’k
lgdkjh miØe dk fgLlk ekuh
tkrh jgh gSA ;gh otg gS fd fodV
>a>korksa ds chp Hkh ns”k esa vkB yk[k
ls T;knk lgdkjh laLFkk,a dke dj
jgh gSAa blls rhl djksM+ ls T;knk
Hkkjrh; vkthfodk dk fuoZgu dj
jgs gSAa lgdkjh i`’BHkwfe ls vkus okys
—’kd usrk ljdkj ds csgrj laokn
djus dh fLFkfr esa gksrs gS]a D;ksfa d
çR;sd lgdkjh laLFkk ljdkj ds
lgdkfjrk foHkkx esa fucaf/kr gksrh gSA
muds lapkyu ds fuxjkuh dh ckxMksj
ljdkjh jftLVªkj ds ikl gksrk gSA
fnypLi gS fd —f’k lq/kkj ds dkuwuksa
dks ftu jktuhfrd nyksa us dqN
ekg igys Lokxr fd;k Fkk] vkanksyu
ds tksj iM+us ds lkFk gh oks ikyk
cnydj fojks/k esa [kM+s gks x,A tc
;wih, dh ljdkj Fkh rks og ,sls
fdlh dkuwu lq/kkj dh cM+h fgek;rh
FkhA dsaæ ljdkj dh fdjfdjh dk
vkuan mBkus esa dksbZ Hkh foi{kh usrk
ihNs ugha gSA vkanksyudfeZ;ksa ds
leFkZu esa c;ku tkjh dj jgs iwoZ
—f’k ea=h “kjn iokj dsaæ ljdkj
dks dkuwu Vkyus dk lq>ko ns jgs
gSaA fnYyh esa vke vkneh ikVhZ
dh ljdkj dsaæ dh vksj ls ykxw
dkuwu dks lcls igys ykxw djus
okyh çeq[k ljdkjksa esa “kkfey FkhA
ysfdu fojks/k dh vuqxwat esa “kkfey
gksus dk vkuan ysus ds fy, fnYyh
ds eq[;ea=h vjfoUn dstjhoky us
vkuuQkuu esa fo/kkulHkk dk l=
cqykdj dsaæh; —f’k lq/kkj fcy dks
lnu dh iVy ij QkM++dj Qsadus
dk Lokax jpkuk ilan fd;kA
ns”k dh 65 Qhlnh ls vf/kd vkcknh
JANUARY 2021 The Cooperator 31
 vkt Hkh —f’k ij fuHkZj g]S fdarq mudk
dksbZ laxBu ugha gSA lgdkfjrk ds
lgkjs [kM+h gksus okyh —f’k O;oLFkk
ds chp igys çHkkoh lgdkjh usrk
gqvk djrs Fks] ysfdu oä dh ekj
us muds bdcky dks /kjk”kk;h djus
dk gh dke fd;k gSA dsaæ ljdkj
dh jk; gS fd mlus ,d ns”k ,d
cktkj dk jkLrk [kksy dj fdlkuksa
ds lkjs ca/ku [kRe dj fn;s gSaA 65
lky iqjkus vko”;d oLrq vf/kfu;e
esa la”kks/ku vkSj vukt] nkyksa] [kk|
rsy] I;kt] vkyw dks vko”;d oLrqvksa
dh lwph ls gVkus ds lkFk&lkFk iês
dh [ksrh dh O;oLFkk ds Hkh }kj [kksy
fn;s x;s gSaA ljdkj us ,d v/;kns”k
ls —f’k {ks= vkSj fdlkuksa dks iqjkuh
csfM;ksa ls eqä dj [kqyk vkdk”k ns
fn;k gSA —f’k {ks= esa dkuwuh lq/kkj us
LDP for Labour Coops
T
he NCCE of NCUI organized
a 3-day online Leadership
Development Program, 2020
for labour cooperatives through
Webex meetings. Given the inabil-
ity of labour co-ops to take off in
real terms, such training will go a
long way.
The LDP was conducted with the
support of National Labour Coop-
erative Federation of India — the
apex body of labour co-op societies
and unions engaged in the develop-
ment of labour and worker coopera-
tives in India.
The LDP was attended by 35 par-
ticipants who mostly came from
Rajasthan and Maharashtra. The
latter boasts the strongest labour
co-op movement in the country.
The objective was to orient par-
ticipants on the Cooperative
Values and Principles, Cooperative
Management and its legal norms
and Economy Revival Packages
for labour cooperatives in the post
32 The Cooperator JANUARY 2021
fdlkuksa dh yacs le; ls vVdh xkM+h
dks ,d >Vds esa iVjh ij yk fn;k
gSA blls fdlku vc dHkh Hkh vkSj
dgha Hkh viuh mit csfQØ gksdj
ys tkus vkSj cspus ds fy, Lora= gks
x;k gSA vHkh rd fdlku jkT;ksa ds
,xzhdYpjy çksMîw”k ekdsZfVax desVh
,DV ds nk;js esa vkrs FksA mlh dkuwu
ds rgr fdlku viuh mit fuf”pr
eaMh ds ykblsal/kkjh vk<+rh dks cspus
ds fy, ck/; gksrk jgk gSA vc —f’k
mit ds varjjkT;h; dkjksckj djus
dh NwV fey xbZ gSA
rY[k fojks/k dh ,d otg —f’k
eafM;ksa ij LFkkuh; usrkvksa dk dCtk
gSA blls vkgr LFkkuh; usrkvksa] eaMh
ds vk<+fr;ksa] dkjksckfj;ksa vkSj nykyksa
dks ;g lq/kkj ilan ugh vk jgk gSA
COVID era, said a press release
issued by NCUI.
The LDP was stimulatory and infor-
mative to improve the effective man-
agement of labour co-ops through
capacity building, governance skills
build up and professional manage-
ment skills.
The focus of LDP was also on creat-
ing awareness on the Atamnirbhar
Bharat schemes, developing profes-
sional capabilities, understanding
governance roles, implementation of
business development plans & tech-
niques, and usefulness of accounts
for improving labour coops.
These training sessions were taken
up by eminent experts, faculties, and
professionals. Discussions were held
on how the poor people, especially
casual low paid and landless workers
could be equipped with technical and
professional capabilities.
There were also discussions on the
need to develop proper investment
fdlku laxBu igys u, —f’k dkuwuksa
esa dqN cnyko vkSj U;wure leFkZu
ewY; ;kuh ,e,lih dh O;oLFkk dks
lq–<+ djus dh ekax dj jgs FksA
ysfdu ykHkkfUorksa ds etcwr “kg vkSj
leFkZu ij ljdkj ls ckrphr ds
ckn os rhuksa u, —f’k dkuwuksa dks jn
fd;k tkus ij vM+ x,A dsaæ ljdkj
ds fy, laln ls ikfjr dkuwu dks
/kjuk&çn”kZu ds ncko esa jí djus
dk eryc bdcky xaok cSBuk gSA
ncko esa ,dckj ljdkj dksbZ dkuwu
jí djrh gS] rks th,lVh] lh,,
vkfn dbZ u, o Hkkoh dkuwuksa dks jí
djus dk varghu flyflyk “kq# gksus
dk [krjk gSA ,sls esa mi;qä gS fd
fdlkuksa ds chp ls gh ljdkjh le>
dks Bhd ls vfHkO;ä djus okys usrk
[kM+s gksaA
programs and various schemes
through an active participation of
people, cooperative banks and in-
stitutions. One of the speakers un-
derlined the importance of labour
coops, redefining their systems and
strategies in the changing global
scenario.
Some speakers also dealt with how
Atamnirbhar Bharat could go a long
way in effecting transformation
and initiation of welfare measures.
Experts stressed on the need for em-
ployment generation, social security,
food security, and health care.
Social responsibility of cooperatives
in the changed context was also de-
liberated upon. Most speakers laid
emphasis on providing valuable
training inputs on cooperative ide-
ologies and practices of the labour
coops so as to generate internal re-
sources and pooling human efforts
for equipping skilled, semiskilled,
unskilled labour and ordinary
workers with capabilities to develop
their own economic enterprises n
 NEWS
GCMMF to spend 1,200 crore to expand
capacity
In order to meet the rising demand, milk processing fa-
cilities would be set up in Rajkot, Gujarat and Kolkata.
In addition to its stronghold in Gujarat, Dairy Giant
Gujarat Cooperative Milk Marketing Federation Ltd
(GCMMF), which markets Amul food brand, has made
fresh investments to expand capability in major markets
like Kolkata and Andhra Pradesh. In the next two years,
the Federation is expected to spend over 1,200 crore in
additional milk processing and value-addition capabili-
ties in these areas.
Of the said investments, GCMMF will spend approxi-
mately 250 crore for a 10 lakh litres per day (LLPD)
processing facility in Kolkata, while it has scheduled
approximately 450-500 crore investments for a milk
processing facility in Rajkot, Saurashtra.
In North Gujarat, with investments of around 600 crore,
it is setting up additional manufacturing capabilities for
dairy products. New investments will be made in Rajkot
and Banaskantha in Gujarat and Kolkata to increase
additional capacity for milk processing as demand for
packaged branded dairy products rise.
NCDC ties up with S-VYASA to set up
yoga centres across country
National Cooperative Development Corporation
(NCDC) has joined hands with Bangaluru-based
Swami Vivekananda Yoga Anusandhana Samsthana
(S-VYASA) university to inculcate habit of yoga
among people by helping cooperatives to set up yoga
wellness centres and naturopathy facilities across the
country.
The move comes two months after the NCDC under
the Union Agriculture Minister launched Ayushman
Sahakar, a scheme aiming to involve co-operatives in
creating healthcare infrastructure that include wellness
centres, Ayush, homoeopathy, drug manufacturing, drug
testing, Ayurveda massage centres, and drug stores,
besides medical education initiatives.
While S-VYASA will provide technical help, the NCDC
will make available working capital and margin money
to meet operational requirements to the interested coop-
eratives for setting yoga wellness centres.
Speaking after the pact was inked online, Union Min-
ister for AYUSH, Shripad Yesso Nayak said that the
initiative would benefit people in the rural areas. He
said his Ministry supports such initiatives aimed at
strengthening efforts in Indian health systems, includ-
ing yoga, a global movement.
Parshottam Rupala, Union Minister of State for Agri-
culture felt that a new dimension has been added by
NCDC to expand the welfare programmes for farmers
under the NCDC Ayushman Sahakar scheme. He hoped
that yoga wellness centres would make a good business
model for cooperatives to strengthen the healthcare de-
livery system in rural areas.
Sundeep Nayak, MD of NCDC said that the Ayushman
Sahakar scheme with an outlay of Rs.10,000 crore aims
at extending financial support to cooperatives. “The
scheme has a comprehensive and holistic approach to
finance healthcare infrastructure and services. It covers
hospitals, healthcare infrastructure, medical education,
nursing education, paramedical education, drugs manu-
facturing, digital health, laboratory services, health
insurance and Indian traditional medical systems like
Ayurveda, Yoga, Naturopathy, Unani, Siddha and Ho-
meopathy,” he informed.
Rajasthan to amend laws to punish
fraudulent credit cooperatives
Rajasthan government will amend relevant laws to
enable effective action against credit cooperative soci-
eties in the state found duping investors. Chief minister
Ashok Gehlot has asked officials to bring appropriate
amendments to ensure punishment to criminals and
protect investors’ hard earned money.
The CM has instructed special operation group (SOG) and
cooperative department to take effective action against the
culprits to prevent a repeat of incidents of cheating and
corruption in the functioning of cooperative societies. He
said home, cooperative, finance and other related depart-
ments should develop a system in the state that discourages
unregulated (irregular) deposit schemes, thereby putting
an end to money-grab schemes run by illegal societies
promising high interest rates. He also asked for running an
awareness campaign to educate people
Haryana directs registered coop
societies to upload records on website
Haryana government has directed all registered coop-
erative societies to upload their records on a web portal
to ensure transparency in operations and facilitate
common people, an official said recently. “Strict action
will be taken against the societies which fail to comply
with the directions,” additional chief secretary, coopera-
tion department, Sanjeev Kaushal said.
The process of uploading data of all cooperative group
housing societies and cooperative house building so-
cieties, which number around 1,200, is underway, he
JANUARY 2021 The Cooperator 33
 said. Data of about 400 such societies has already been
uploaded on rcsharyana.gov.in, he added.
The availability of data online would not only bring
more transparency in operations, but would also help
in resolving disputes. It would also facilitate common
people wanting to buy or rent a plot or flat in these so-
cieties as they would be able to access all basic details
about the societies through the portal.
Govt discusses ways to improve
livelihood of dairy farmers
Union Fisheries, Animal Husbandry and Dairying Min-
ister Giriraj Singh discussed ways to improve livelihood
of dairy farmers through different innovative busi-
ness models with the NDDB and dairy cooperatives.
Besides National Dairy Development Board (NDDB),
representatives of Gujarat Milk Marketing Federation
(GCMMF) and Kaira District Cooperative Milk Pro-
ducers’ Union were present in the meeting held recently
at Anand, Gujarat.
“Dairying in India is more about livelihoods to mil-
lions of farmers than simply a business. Milk is also
India’s single largest agricultural commodity in value
terms and is more than the combined value of paddy
and wheat put together,” a statement said quoting the
minister having said during discussion. To achieve the
target of doubling farmers’ income, the NDDB is pro-
moting technology-driven income generating activities
for the dairy farmers, he said.
“Motivating and involving dairy farmers in multiple
streams of income through diverse alternative ac-
tivities targeted at their livelihood diversification is
important for building their economic resilience and
welfare,” he noted.
Training programme for officials of
Dairy Cooperative Federation
National Cooperative Development Corporation, New
Delhi, LINAC organized on online training programme
on “Extension and Guiding Skills for Milch Animal De-
velopment” for field officials of Telangana State Dairy
Development Cooperative Federation Ltd from 7 to 9
December, 2020. The programme organized through
Zoom App deliberated on technical, administrative and
managerial aspects.
In line with the above programme, Telangana State
Cooperative Union Ltd, Hyderabad also arranged a
training programme for these field officers in col-
laboration with NCDC LINAC on “Cooperative
Principles, Laws, Rules and Regulations” which
was attended by 27 people. Provisions of Telangana
Cooperative Societies Act, 1964 applicable to dairy
cooperatives were discussed in detail. The process
of registration of dairy cooperative society and key
aspects of management of dairy cooperative were
also discussed.
Health check-up camp
A free skin care and general health check-up camp was
organized recently in the premise of Delhi Health Care
Co-op Society Medical Store at Main Mandoli Road,
Ram Nagar Extension opposite Dr Ambedkar Gate
Shahdara, Delhi n

Elections Held for NCUI Employees’ Welfare Association

The elections were recently held for the office-bearers of NCUI Employees’ Welfare Association. Following people were elected
unanimously.
1. Shri Ashish Dwivedi, President, 2. Shri Ved Prakash, Vice-President
3. Shri Uday Thakur, Vice President 4. Shri Ritesh Dey, General Secretary
5. Shri Ramesh Chandra Pandey - Jt Secretary 6. Shri Neeraj Thapliyal - Treasurer
7. Ms Sandhya Kapoor, Executive Member 8. Shri Narender Singh, Executive Member
9. Shri John, Executive Member 10. Shri Laxman Prasad, Executive Member
At a meeting held after the elections, the elected office–bearers expressed happiness over being elected unanimously and assured
that they would seek redressal of all the grievances of the employees.

34 The Cooperator JANUARY 2021