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.

Short title.

Amendment of

section 18.

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:-

1. This Act may be called the Odisha Co-operative Societies

(Amendment) Act, 2018.

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

words and comma“, Farmers’ Service Co-operative Society and

Society dealing with credit business” shall be substituted;

Odisha Act

2 of 1963.

-2-

(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

Act are proposed.

The Bill seeks to achieve the above objectives.

(SURJYA NARAYAN PATRO)

Member-in-Charge

A.K. SARANGI

Secretary

Odisha Legislative Assembly

________

Printed and Published by the Director, Printing, Stationery and Publication, Odisha, Cuttack-10

OGP/SBP Ex. Gaz. -1161-173+12