The Banning of Banning of Unregulated Deposit Schemes Ordiance-2019” & its impact on Multi State Co-operative societies

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The Banning of Banning of Unregulated Deposit Schemes Ordiance-2019” & its impact on Multi State Co-operative societies

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:

PART III
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,
President.

  1. 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.

Regards,
CA Naresh Jakhotia
Partner – M/s. SSRPN & Co.
10, Laxmi Vyankatesh Apartment
Telephone Exchange Square
Central Avenue Road
Nagpur-440008.

Web     :  www.ssrpn.com

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