[ 1741 ]

GOVERNMENT OF PUDUCHERRY

CHIEF SECRETARIAT (COOPERATION)

(G.O. Ms. No. 5/Coop.,Puducherry, dated 15th November 2023)

NOTIFICATION

In exercise of the powers conferred by sub-section (1) of section 170

of the Puducherry Co-operative Societies Act, 1972, the Lieutenant-Governor

of Puducherry hereby makes the following rules, further to amend the

Puducherry Co-operative Societies Rules, 1973, issued in G.O. Ms. No. 61,

dated 13th May, 1974 of the Development Department, Government of

Puducherry and published in the Extraordinary Gazette of Government

of Puducherry No. 78, dated 29th June, 1974, namely :-

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La Gazette de L' État de Poudouchéry

The Gazette of Puducherry

PART - II

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No. 97 Poudouchéry Mardi

Decembre

2023

No.

Puducherry

Tuesday

5th

December

2023

(14 Agrahayana 1945)

1742

LA GAZETTE DE L'ETAT

[PART–II

1. Short title and commencement.— (i) These rules may be called

“The Puducherry Co-operative Societies (Amendment) Rules, 2023”.

(ii) They shall come into force from the date of their publication

in the Official Gazette.

2. Amendment of rule 2.— In the Puducherry Co-operative

Societies Rules, 1973, for the existing rule 2, the following shall be

substituted, namely: -

2. In these rules, unless the context otherwise requires, -

(a) “Act” means, the Puducherry Co-operative Societies

Act, 1972 (Act No. 7 of 1973);

(b) “Agricultural loan” mean, loan granted to farmers or land

tenants for cultivation purpose;

consumer durables, such as, motor car, motorcycle, moped,

scooter, electrical appliance, electronic appliance, solar system,

furniture, etc.;

(d) “Decree” means, any Decree, Order, Decision or Award

referred in section 133;

(e) “Decree holder” mean, any Society or any person or the

Government in whose favour a Decree has been passed;

(f) “Default” means, failure on the part of the Society member

or other person, to repay to the Financing Bank or any other

society a loan or any other amount due to it within the time fixed

for repayment, or to return to the Society within the time fixed

the finished goods in respect of raw materials advanced, or to

keep any other obligation for the fulfilment of which a time-limit

has been specified in the By-laws;

(g) “Defaulter” means, any Society against which or any

person against whom a Decree has been obtained;

(h) “Form” means, a Form set out in the Schedule to these

rules;

(i) “General Body” or “a meeting of the General Body” mean,

in relation to a society which has provided for the constitution of

a representative General Body under clause (b) of sub-section (1)

1743

PART–II]

LA GAZETTE DE L'ETAT

of section 31, such representative General Body in respect of

the powers exercisable by the representative General Body or a

meeting of such representative General Body;

(j) “Housing loan” mean, loan granted for the purchase of

vacant residential plot and purchase, construction or

modification of residential house/flat/apartment and commercial

complex;

(k) “Jewel loan” mean, loan granted on the pledge of jewels;

(l) “Long-term loan” mean, loan granted on the registered

mortgage of immovable properly and repayable within a period

of twenty (20) years from the date of the grant of the loan;

(m) “Medium-term loan” mean, loan repayable within a period

of ten (10) years from the date of the grant of the loan;

(n) “Non-agricultural loan” mean, loan granted to farmer or

land tenant to carry out agricultural allied activities and loan

granted

small-scale/medium-scale

entrepreneur

for

non-cultivation purpose;

(o) “Region” means, any of four regions, viz., Puducherry,

Karaikal, Mahe and Yanam comprised in the Union territory of

Puducherry;

(p) “Registrar of the Region” mean, a person subordinate to

the Registrar and empowered by him to exercise within a region

under section 133 and 134;

(q) “Section” means, a section of the Act;

(r) “Short-term loan” mean, loan repayable within three (3)

years from the date of the grant of the loan;

(s) “Society” means, a registered society;

(t) “Surety loan” mean, loan granted to monthly salary

earning members on the surety of another monthly salary

earning member; and

(u) “Working Capital” mean, such portion of the reserve

fund, paid-up share capital, loans and deposits received by a

society and debentures issued by a Society as have not been

invested in buildings and other fixed assets.

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LA GAZETTE DE L'ETAT

[PART–II

3. Amendment of rule 49.— In the Puducherry Co-operative

Societies Rules, 1973, for the existing rule 49, the following shall be

substituted, namely:-

49 - Restriction on grant of loans. -

(1) Societies may grant short-term loan, medium-term loan and

long-term loan to their members, subject to the objects specified in their

registered Bye-laws and in accordance with the provisions of the Act

and the rules made thereunder.

(2) For issuing loans, the Committee of Management of

Societies shall invariably frame subsidiary regulations and submit the

same to the Registrar for approval.

(3) The Committee of Management is the Competent Authority

to sanction loans to the members strictly subject to the provisions of

the subsidiary regulations approved by the Registrar.

(4) Disbursement of loan shall be made by mean of “an account

payee cheque”, Electronic Clearing Service (ECS) or Real Time Gross

Settlement (RTOS). Under any circumstance, loans shall not be disbursed

in cash.

(5) Loans granted by the Societies shall he recovered from the

borrowers, either in one lump sum or in equal monthly instalments or in

equated monthly instalments, as the case may be, along with interest

due thereon.

(6) Long-term loans shall be granted only on the registered

mortgage of immovable properties.

(7) Financing Hank may grant short-term loan, medium-term loan

and long-term loan to its Affiliated Member-Societies and to its

individual members.

(8) Co-operative Land Development Hank may grant short-term

loan, medium-term loan and long-term loan to its individual members.

(9) Co-operative Urban Bank may grant short-term loan,

medium-term loan and long-term loan to its members.

(10) With the prior approval of the Registrar, Co-operative Land

Development Bank and Co-operative Urban Bank may grant short-term

and medium-term loan to other Societies.

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PART–II]

LA GAZETTE DE L'ETAT

(11) State Co-operative Housing Federation may grant loan to

its affiliated primary Member-Societies for issuing housing loan to their

individual members.

(12) Primary housing Societies may grant medium-term and

long-term housing loans only on the registered mortgage of housing

properties.

(13) Primary housing Societies may grant short-term loans to

their members for purchase of building materials and modification of

existing buildings.

(14) Primary level Agricultural Credit Societies may grant –

(a) short-term jewel loans.

(b) short-term and medium-term agricultural loans,

(d) medium-term surety loans/consumer loans.

(15) Primary level Non-agricultural Credit Societies may grant

short-term loans to their monthly salary earning members with or without

the surety of another monthly salary earning member.

(16) Primary level Non-agricultural Credit Societies may grant

medium-term surety loans to their monthly salary earning members only

on the surety of another monthly salary earning member.

4. This issues with the approval of Finance Department vide

I.D.No. 30511/FC/FD/F5/A2/2023, dated 27-10-2023.

(By order of the Lieutenant-Governor)

A. PUNITHAMARY,

Under Secretary to Government

(Cooperation).

————

online publication at “https://styandptg.py.gov.in”

Published by The Director, Government Press, Puducherry.