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Malpractices in co-ops: New law allows immediate action by govt
The New Indian Express Vellore
|December 11, 2024
IN the wake of repeated instances of malpractice and funds misappropriation in cooperative societies—government-funded and privately managed—the state government has enacted a law empowering the Registrar of Cooperative Societies (RCS) to immediately suspend the governing board of the societies involved in financial irregularities or other malpractices.
Previously, the RCS had to wait 30 to 60 days after issuing notices to the board of directors before appointing an interim administrator. However, a bill amending the Tamil Nadu Cooperative Societies Act, 1983 introduced by minister K R Periyakaruppan and adopted in the Assembly on Tuesday eliminates this delay.
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