Action should be taken to close down cooperative societies: High Court

KOCHI: The High Court has asked the government to formulate clear measures to close cooperative societies that fail to return deposits. A division bench comprising Justice Amit Rawal and Justice KV Jayakumar stated that the responsibility in this regard lies with the state government. The court was hearing appeals filed by depositors against the Mylapra and Kumplampoika cooperative societies in Pathanamthitta district.

The court also directed the Enforcement Directorate to provide details of cases related to society irregularities. Adv D Kishore was appointed as amicus curiae to assist the court in further proceedings. The court held that the societies mentioned in the petition are not eligible for assistance under the rehabilitation scheme devised by the government. Therefore, the Division Bench set aside the single bench order to refund the deposit based on the assistance received from the scheme.The Joint Registrar of Cooperatives informed that 18 societies have applied for assistance from the scheme. Out of these, only seven applications have been submitted following proper procedures. The court directed to inform about these within a week. It should also specify the amount of rupees to be returned to the depositors. The court also said that if the explanation is not satisfactory, a voluntary liquidator will be appointed to close them.The court is examining the possibility of confiscating the assets of the societies and returning the amount to the depositors. According to the Enforcement Directorate, 20 societies are facing action under the Prevention of Money Laundering Act.