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Goa government considering 5-year ban on registration of cash-credit societies

According to Chief Minister Pramod Sawant, the Goa government was exploring options to ban non-Goans from starting co-operative societies in Goa, especially those which promise to double money in quick time. He has also directed the state Registrar of Co-operatives not to permit non-Goans from setting up co-operatives in the coastal state.

India TV News Desk India TV News Desk
New Delhi Published on: July 09, 2019 14:02 IST
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Goa government considering 5-year ban on registration of cash-credit societies

The Goa government is considering to ban the registration of cash-credit societies for a period of 5 years. Confirming the development, Chief Minister Pramod Sawant on Tuesday said he has directed the state Registrar of Co-operatives not to permit non-Goans from setting up co-operatives in the coastal state on account of a spate of frauds carried out by such firms in the past.

Speaking at an event organised by the state Co-operatives Ministry, Sawant said, "There are too many cash credit co-operative societies (in Goa). We are looking at legally shutting them down. In order to become chairpersons, some people start small collectives with acquaintances, collect a pool of money, give some loans and that is it. Such a society typically shuts down in two years."

"Should there be a ban on such societies for five years? There are more than enough already. If someone wants to start a new society, they may even consider taking over those which are willing to sell off. I have asked the department to review the law and if possible shut down the registration of such societies for five years," Sawant said.

The Goa government was exploring options to ban non-Goans from starting co-operative societies in Goa, especially those which promise to double money in quick time, the chief minister said. 

"We are looking at not giving permission to non-Goans for starting co-operatives in Goa. We will not tolerate those who come here and loot Goans with such fraudulent schemes," Sawant said, adding that there was a tendency among the residents of the state to fall for fraudulent schemes like doubling of money, which had led to investors going bankrupt.

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