ଓଡ଼ିଶା
The Odisha Gazette
EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. 1684 , CUTTACK , THURSDAY , SEPTEMBER 6 , 2018 / BHADRA 15 , 1940
SECRETARIAT OF THE ODISHA LEGISLATIVE ASSEMBLY
NOTIFICATION
The 5th September , 2018
No.8381/ L.A .-The following Bill which has been introduced in the Odisha Legislative Assembly on the 5th September , 2018 is herewith published under Rule 68 of the Rules of Procedure and Conduct of Business in the Odisha Legislative Assembly for general information .
THE ODISHA CO - OPERATIVE SOCIETIES ( AMENDMENT) BILL , 2018
A BILL TO AMEND THE ODISHA CO - OPERATIVE SOCIETIES ACT , 1962 .
Be it enacted by the Legislature of the state of Odisha in Sixty- ninth Year of Republic of India as follows : -
Shorttitle.
1. This Act may be called the Odisha Co- operative Societies (Amendment) Act , 2018 .
Amendment of section 18 .
2. In the Odisha Co - operative Societies Act , 1962 , in section 18, in sub- section ( 1 ) ,
(i ) for the words " and Farmers ' Service Co- operative Society " , the Odisha Act words and comma " , Farmers ' Service Co- operative Society and Society dealing with credit business " shall be substituted ; 2 of1963 .
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(ii ) the following Explanation shall be added , namely : -
Explanation.- ' Society dealing with credit business ' means the Primary Society , other than the Co- operative Bank and Society organised exclusively for promotion of economic interest of any particular professional or occupational group , whose principal object is accepting deposit and advancing loan . " ; and
( iii ) the following proviso shall be added , after the explanation so added , namely: -
" Provided that the nominal member so enrolled , prior to the commencement of the Odisha Co - operative Societies (Amendment) Act, 2018 , shall discharge the liability incurred , if any, and the Society shall refund the share capital contribution , after its determination and any other dues to such nominal member within a period of one year from the date of such commencement . " STATEMENT OF OBJECTS AND REASONS
The 12th meeting of the State Level Co - ordination Committee ( SLCC ) on Non- Banking Financial Companies for the State of Odisha was held by the Reserve Bank of India on the 9th June , 2017 under the Chairmanship of the Chief Secretary , Odisha . In the said meeting the participants raised concern about the collection of deposits by the Co - operative Societies , by enrolling individuals as their nominal member . It was observed that ineffectiveness of the existing regulations and in the absence of proper monitoring , the Co- operative Societies become conduits for potential mischief which need to be prohibited . Besides , the Central Registrar of Co- operative Societies by an instruction has prohibited Co - operative Societies registered under the Multi- State Co- operative Societies Act, 2002 from collecting deposits from nominal members . Considering the gravity of the situation and the concern of the members of the SLCC , it was decided to restrict the collection of deposits from the nominal members by the Co- operative Societies , by bringing amendments to the existing Odisha Co - operative Societies Act , 1962 which was under consideration of the Government .
Accordingly , it was decided to bring amendment in section 18 of the Odisha Co- operative Societies Act , 1962 and by this amendment societies dealing with credit business , other than the Co- operative Bank and the societies organized exclusively for promotion of economic interest of any particular professional or occupational group , whose principal object is accepting deposit and advancing loan , shall admit any person as nominal member . Suitable changes in the existing provisions of the Actare proposed .
The Bill seeks to achieve the above objectives.
( SURJYA NARAYAN PATRO) Member- in- Charge
A.K. SARANGI
Secretary
Odisha Legislative Assembly
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