The Banning of Banning of Unregulated Deposit Schemes Ordiance-2019” & its impact on Multi State Co-operative societies
Deposits accepted by the Multi State Co-operative societies Act-2002 is the part of the “REGULATED DEPOSIT SCHEME” as per section 2(14) to “The Banning of Banning of Unregulated Deposit Schemes Ordiance-2019”.
The relevant part of the first schedule to the ordinance reads as under:
S.No. Regulator Regulated Deposit Scheme
8 Central Registrar, Any scheme or an arrangement for
Multi-State Co-operative acceptance of deposits from
Societies- voting members by a Multi-State Co-operative Society registered under the Multi-State Co-operative Societies Act, 2002 (39 of 2002).
However, there is one important amendment which is done in the Multi State Co-operative societies Act-2002 in part III to the ordinance. The same is reproduced hereunder:
AMENDMENT TO THE MULTI-STATE CO-OPERATIVE
SOCIETIES ACT, 2002
Amendment of section 67 of Act 39 of 2002.
In the Multi-State Co-operative Societies Act, 2002, in section 67, in sub-section (1),—
(a) after the words “receive deposits”, the words “from its voting members” shall be inserted;
(b) the following Explanation shall be inserted, namely:—
“Explanation.—For the removal of doubts, it is hereby clarified that a multi-State co-operative society shall not be entitled to receive deposits from persons other than voting members”.
RAM NATH KOVIND,
- G. NARAYANA RAJU,
Secretary to the Govt. of India
It means that Multi-State Co-operative Societies are eligible to receive the deposits from voting members only and not from nominal members. In short, if any person receives deposits from non-voting member, it will be regarded as “Unregulated Deposits Scheme” under the “The Banning ofBanning of Unregulated Deposit Schemes Ordiance-2019” and all the provisions would get invoked in such cases.
CA Naresh Jakhotia
Partner – M/s. SSRPN & Co.
10, Laxmi Vyankatesh Apartment
Telephone Exchange Square
Central Avenue Road
Web : www.ssrpn.com